Solid performance in a volatile year; operating result (EBITA) up
14.7% to EUR 182 million
* Revenue up 22.9% to EUR 4.9 billion with strong results in premix
and feed specialities
* Spread of activities and strategic direction provides stability
in challenging times
* Doubling of 2006 EBITA to EUR 230 million under current
circumstances expected to be met in 2010-2012
* Profit after tax from continuing operations decreases by 6.6% due
to higher financing costs and tax rate
* Sound balance sheet and healthy capital structure
* Dividend proposal of EUR 1.43 per share; pay-out ratio 45%
Key figures
(EUR x million)
2008 2007 Change
Revenue from continuing operations 4,943.1 4,021.1 22.9%
Operating result before exceptional items and
amortisation (EBITA) 182.1 158.8 14.7%
Operating result from continuing operations 172.1 149.0 15.5%
(EBIT)
Profit after tax from continuing operations 105.8 113.3 -6.6%
Basic earnings per share for continuing 3.02 3.24 -6.8%
operations (EUR)
Final dividend per ordinary share (EUR) 1.03 1.29
Interim dividend per ordinary share (EUR) 0.40 0.35
Dividend per ordinary share (EUR) 1.43 1.64 -12.8%
A solid financial performance in 2008
Wout Dekker, Nutreco CEO: "Nutreco put in a solid performance and we
increased our revenue to almost EUR 5 billion. This increase is
mainly driven by high raw material prices, as well as the
contribution from acquisitions in 2007 and 2008. This development is
supported by our solid business model based on our strategic choices
in recent years. Our premix and feed specialities 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 specialities. Our fish feed business is
temporarily impacted by a lower demand for fish feed in Chile. Our
customers, the Chilean fish farming companies had to downscale their
operations, as a consequence of the ISA virus. This impact is
expected to continue in 2009. The Spanish meat business reported
disappointing results due to high raw material prices which could not
be fully passed on to our customers and a shift to cheaper products
by consumers due to the economic crisis in Spain."
From global food crisis to global recession fears
"2008 was a turbulent year for more than one reason. 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. Mid 2008 we faced
unprecedented volatility and down turn in commodity prices."
EBITA of EUR 230 million remains the primary medium term financial
target
"Nutreco stays fully committed to strengthen its animal nutrition and
fish feed business by organic growth and acquisitions. Nutreco will
especially focus on growth in feed additives. Due to our strong
balance sheet and market positions we are well placed for today's
challenging times. Doubling 2006 EBITA to EUR 230 million remains the
primary medium term financial target. Due to the uncertainties in the
global economy we are prudent in the usage of our financial room.
This could temporarily slow down our speed in acquiring new
companies. There are also more uncertainties related to organic
growth. Given the current circumstances we have extended the
timeframe for reaching the EBITA target of EUR 230 million to
2010-2012."
Knowledge and technology are crucial for sustainable food security
"Innovation, backed by science and technology is the key for future
food security. Due to the increasing feed-to-food demand and the
increasingly complex and volatile raw material market, nutritional
know-how, alternative ingredients and sustainable feed products have
become crucial. Feed additives such as enzymes, anti-oxidants and
organic acids can support the use of co-products from the food and
bio-fuel industry in animal nutrition even further, providing greater
feed efficiencies, better animal health and less impact on the
environment. This dynamic environment requires high level expertise
in raw materials, feed formulation and feed-to-food safety. With our
experience, knowledge and innovative capabilities we are well
positioned to capitalise on this."
* * * * *
Nutreco
Nutreco is an international animal nutrition and fish feed company
that seeks to create added value in major markets through its
knowledge of the food production chains, in which it has a selective
downstream presence. Nutreco's business groups, each comprising
several business units, have over 100 production and processing
plants in more than 30 countries and about 9,300 employees.
Nutreco generated revenue of EUR 4,943.1 million in 2008. Nutreco is
quoted on the Official Market of Euronext Amsterdam and is included
in the Amsterdam Midkap Index and the Euronext 150 Index.
For more information:
Jurgen Pullens, Director Investor Relations and Corporate
Communications, Nutreco
Telephone: +31 33 422 6134
Mobile: +31 6 5159 9483
E-mail: jurgen.pullens@nutreco.com
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