Nutreco earnings up 13.2%

Nutreco earnings up 13.2%

GLOBAL animal nutrition company Nutreco posted full-year revenue of 5.23 billion euros (approximately $6.89 billion) for 2012, up 10.8% from 2011.

According to the company's 2012 results, released Feb. 7, roughly 1.8% of that increase was organic volume growth.

Full-year earnings from continuing operations increased 13.2% to 262.1 million euros (Table), with basic earnings per share up 26.2% to 4.53 euros.

Based on what Nutreco chief executive officer Knut Nesse described as a "record year," the company will propose a 1:2 share split to shareholders at its annual general meeting on March 28.

"In challenging economic times, we have continued to support our customers through innovative and sustainable feed solutions that contribute to their productivity and profitability," he said. "I'm pleased that we realized the strongest operational results in our growth segments: Fish Feed and Premix & Feed Specialties."

Last year was a significant year for the company as it embarked on a multiyear strategy focused on "driving sustainable growth." The so-called "Ambition 2016" strategy is Nutreco's roadmap to achieving a 2016 target of 400 million euros for earnings before interest, takes and amortization (EBITA).

To support that roadmap, Nesse said the company issued a $250 million private financing placement in July 2012 and, in September, amended its 500 million euros revolving credit facility from 2014 to 2017 while improving the conditions of the facility.

Nutreco said its activities in 2012 focused on strengthening its presence in Brazil, opening a new production plant in Russia and acquiring 75% ownership of Gisis, a leading shrimp and tilapia feed producer in Ecuador.

Animal Nutrition remains the company's leading division, accounting for 149.1 million euros of total EBITA, up 4.7% from 142.4 million euros in 2011. Fish Feed, however, nearly caught up, comprising 142.0 million euros of the total EBITA, a 19.6% increase from 118.7 million euros in 2011.

The company said its Premix & Feed Specialties segment recorded strong operating margins in each of the past two quarters, reaching the guidance of 7% due to performance in growth geographies, including China and Indonesia.

Acquisitions and investments were a big part of Nutreco's efforts in 2012, and the firm committed several-million euros to research and development in addition to direct investments in production capabilities. The company opened an upgraded swine research facility in the Netherlands as well as a new shrimp research unit in China.

Nesse said Nutreco's research and development budget now tops 25 million euros annually to support a growing demand for "more sustainable, high-added-value nutritional solutions."

 

Nutreco financial statement, million euros

 

2012

2011

% change

Revenue

5,229.1

4,721.1

10.8

EBITDA before exceptional items from continuing operations

320.2

285.5

12.1

EBITA by segment

Animal Nutrition

149.1

142.4

4.7

Fish Feed

142.0

118.7

19.6

Corporate

-29.0

-29.5

-1.7

Total segment EBITA

262.1

231.6

13.2

Total result for the period

177.6

131.2

35.4

Earnings per share (euros)

4.53

3.59

26.2

Dividend per ordinary share (euros)

2.05

1.80

13.9

 

Volume:85 Issue:08

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