The summary of the Q1 trading statement from Nutreco reports revenue for Q1 2009 at €1,043.9 million; a decrease of 7.0 per cent from Q1 2008. All businesses reported were in line with expectations except Compound Feed Europe, which had an operating loss in Q1 due to a weak performance in the Netherlands.

Half-year EBITA will be lower than in 2008 due to an operational loss in Compound Feed Europe and one-time benefits of €20 million in 2008.

The Executive Board is extended with operational responsibilities in line with strategic direction.

Operational developments

Historically, the volumes and operational results in the first two quarters of the year are relatively low compared with the volumes in the second half-year due to seasonal influences.

The Nutreco revenue amounted to €1,043.9 in Q1 2009, a decrease of 7.0 per cent compared with Q1 2008. This was due to a lower demand for feed in line with the market developments and lower sales prices because of the decline of grain and soya prices.

The Premix and Feed Specialities business reported a 4.2 per cent increase in revenue compared with Q1 2008. Lower volumes were compensated by a positive price-effect. The operational performance in the Premix and feed specialities business is in line with last year excluding the one-time benefits that were approximately €15 million in the first half of 2008.

The revenue of Compound Feed Europe was €78.3 million lower than in Q1 2008 (-24.7 per cent). Lower sales prices accounted for approximately 17 per cent. Compared with Q1 2008, the average grain and soya prices were 20 to 25 per cent lower. Volumes decreased by 10 per cent due to the lower live stock population, partly related to the economic situation. Demand for compound feed in Europe is expected to decline in 2009 between 5 and 10 per cent on average. Feed for dairy cows will face a volume decline because of low prices for milk and a lower demand for pig feed is expected in Spain.

In Q1 2009, the compound feed business in The Netherlands (Hendrix UTD) reported an operating loss due to its view on the prices of raw materials. Measures have been taken to restore profitability and management changes will be made. Nutreco expects Compound feed Europe to return to an operational profit in the second half of 2009. This is expected to lead to a profit for the full year in 2009.

The revenue in Q1 2009 of Animal Nutrition Canada was €92.6 million compared with €94.9 million in Q1 2008 (-2.4 per cent). The operational performance was in line with last year.

The revenue in Fish Feed decreased by 6.6 per cent to €189.4 million compared with Q1 2008. The volume decline is mainly related to continuing health challenges in the Chilean fish farming market. As a consequence of the ISA virus in Chile the industry had to downscale farming operations which impacted on the volumes. A volume growth is expected in other salmon farming areas such as Norway and Canada.

The revenue from the Meat and Other Businesses was 2.0 per cent higher – at €265.6 million in Q1 2009 compared to €260.4 million in the same period of last year – mainly related to higher poultry prices in Spain compared with the first quarter of 2008.

Nutreco is a global leader in animal nutrition and fish feed. THe company's advanced feed solutions are at the origin of food for millions of consumers worldwide. Quality, innovation and sustainability are guiding principles, embedded in the Nutreco culture from research and raw material procurement to products and services for agriculture and aquaculture. Experience across 100 years brings Nutreco a rich heritage of knowledge and experience for building its future. Nutreco employs almost 9,300 people in 30 countries, with sales in 80 countries. Nutreco is listed on the Euronext stock exchange in Amsterdam and has annual revenues approaching €5 billion.

Further Reading

-

You can view the full report by clicking here.