Nutreco’s Revenue, Earnings Up in 2008

By

Steven Hedlund

Published on
February 12, 2009

The world’s largest fish feed producer on Thursday posted impressive 2008 financial results despite the challenging economic climate.

Nutreco, owner of Norwegian fish feed manufacturer Skretting, reported 2008 revenue of EUR 4.9 billion (USD 6.3 billion), up 22.9 percent from 2007, and earnings of EUR 182.1 million (USD 233.8 million), up 14.7 percent from the previous year.

“This increase [in revenue] is mainly driven by high raw material prices [and] the contribution from acquisitions in 2007 and 2008,” said Nutreco CEO Wout Dekker. “This development is supported by our solid business. Our premix and feed specialties business had a record performance in 2008 due to a successful integration of the acquired BASF premix businesses, excellent raw material positions and organic growth in feed specialties.”

However, added Dekker, the company’s fish feed sales were adversely impacted by reduced demand from Chilean salmon farmers, who have been battling an outbreak of the infectious salmon anemia virus since mid-2007.

“This impact is expected to continue in 2009,” he said.

Dekker admitted that 2008 was a volatile year.

“We began the year with shortages of raw materials. The raw materials prices were high and rose due to the demand from emerging markets as well as from the increased demand from the bio-fuel industry. [By] mid-2008 we faced unprecedented volatility and downturn in commodity prices,” he explained.

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