Nutreco financials rise after market delisting

Dutch multinational animal feed business Nutreco has reported full year increases in both profitability and revenues in 2015, the year in which it delisted from the Amsterdam stock exchange. The company was acquired by the €18.1 billion Dutch SHV Holdings investment fund in April last year.

 

Nutreco made an operating profit of €282 million on revenues of €5.66 billion in the twelve months to December 31st 2015, compared to €236m and €5.25bn in fiscal 2014.

The company says improved across all three divisions - Animal Nutrition, Aquafeed and Nutreco Iberia, through a more favourable product mix, the contribution from acquisitions in Brazil and positive currency effects.

The Animal Nutrition division, which primarily trades under the Trouw Nutrition brand, performed well despite the difficult global swine and dairy markets.  An increased focus on global products improved the performance of Nutreco’s Selko feed additive brand. The company claims to be the world’s second largest feed additive manufacturer with a 12% global market share.

The company’s Aquafeed division, which trades under the Skretting brand, is the global market leader in salmonid feed products, with a 32% market share, and the second largest shrimp feed producer with 7% of that market. It reports a strong salmon feed business performance in 2015, despite overcapacity in the main Norwegian market.  There was strong organic growth for its shrimp feed in Ecuador.

Finally, Nutreco says its Iberian division performed well on the back of a recovering Spanish economy. The Nanta compound feed manufacturer with 13% of the Spanish feed market, saw increased volumes sold to third parties, while the Sada poultry meat business which supplies 25% of Spain’s poultry meat, benefited from a good performance during the summer season.

Overall, the company says it made steady progress against its sustainability objectives, with lower water and energy use over the year and a reduction in Co2 emissions. The proportion of its raw material supply chain covered by supplier audits increased from 85% to 90%.

“2015 was in many ways a special year for Nutreco,” states chief executive Knut Nesse. “The financial results were very good across all of our businesses. This confirms that we are increasingly successful in translating our R&D and innovation capabilities into sustainable nutritional solutions valued by our customers. With the acquisition of US-based trace mineral producer Micronutrients we realised the third-largest acquisition in our history, making Nutreco the category leader in a specific feed additive segment.”

“Perhaps the most visible event was the delisting of Nutreco from the Amsterdam stock exchange as a result of the take-over by SHV. We opened a new chapter for Nutreco as a private company, while continuing our 'Driving sustainable growth' strategy with the full support of our new shareholder.”

Posted on May 31, 2016 and filed under Company News, Feed.