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Skretting fish feed. (Photo Credit: Skretting)
Nutreco's fish feed division lags behind in Q1
(NETHERLANDS, 4/19/2013)
The results that Nutreco has reported for the first quarter show fish feed revenues of fish feed division reached EUR 325.3 million, 3 per cent lower than what was obtained in the same period of 2012 (EUR 335.2 million) for the division run by Skretting.
This decline was mostly a result of remarkably cold water temperatures in Norway, which caused reduced biomass and significantly less favourable growing conditions, leading to a 19 per cent drop in Q1 salmonid feed volumes.
Total volume fell by 12.9 per cent mostly due to lower demand for salmon feed in Norway, which was partly compensated for by a higher demand for non-salmonid feed especially in China.
As a whole, the Norwegian market has declined by 23 per cent in volume, while the price effect was 10.4 per cent due to higher raw material prices and the exchange rate effect was -0.5 per cent.
Given the first three months represent the smallest quarter of the year by volume and EBITDA, however, and Nutreco said it expects the full-year volume growth to be favourable.
For non-salmonid species, the volume share of fish feed is now 37 per cent compared with 31 per cent in Q1 2012. The operating result in Q1 was significantly lower than last year mostly due to lower volumes.
The outlook for the first half of 2013 is anticipated to be markedly lower than the outstanding first half of 2012, when Skretting's operational results were EUR 44.0 million.
Meanwhile, the closing of its acquisition of leading shrimp and tilapia feed producer in Ecuador, Gisis, expected to be completed by the end of Q2 2013. The acquisition of 75 per cent of the shares in Gisis, the shrimp and fish feed subsidiary of the Expalsa group, was announced last October.
It should be noted that Nutreco’s revenue in Q1 was EUR 1.1 billion, with an increase of 1.3 per cent from Q1 2012. For the first half of the year based on current trading conditions, Nutreco expects EBITA before exceptional items to be approximately EUR 90 million compared to EUR 103.7 million in H1 2012.
"In Fish Feed we are having a slow start to the year, mostly due to less favourable growing conditions caused by cold water temperatures in Norway which will likely lead to a shift in feed demand to the remainder of the year,” said Knut Nesse, CEO of Nutreco. “The lower supply of salmon resulted in a strong salmon price increase which is favourable for our customers.”
“Fish feed for non-salmonid species performed well with a volume increase of 5 per cent. Overall full year volume growth in Fish Feed is expected to be positive,” Nesse continued.
Related article:
- Nutreco's H1 results soar by 24pc
- Nutreco to take over 75pc of fish feed company
By Natalia Real
editorial@seafood.media
www.seafood.media
Information of the company:
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Address:
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Sjohagen 3
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City:
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Stavanger
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State/ZIP:
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(NO-4016)
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Country:
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Netherlands
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Phone:
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+31 51 82 55 00
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Fax:
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+31 51 82 55 01
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E-Mail:
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arc@skretting.com
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