Nutreco opens new animal nutrition plant in Indonesia

Nutreco continues its commitment to growth and investment in Asia with the opening of a new animal nutrition plant in East Java, Indonesia, and the completion of the upgrade of its animal nutrition plant in Hunan, China. The EUR15 million (US$16.9 million) investment in greater production capacity of premixes, farm minerals and young animal feed enables Nutreco’s animal nutrition business Trouw Nutrition to further strengthen its position in the region.
The new premix plant in East Java is Nutreco’s second premix plant in Indonesia and its fifth in Asia. It has a 12,000 ton premix and farm minerals capacity and will employ 20 people. This expansion allows Trouw Nutrition to better serve Indonesian farmers and feed mills through enhanced nutritional services and faster response times.
The plant in Hunan was originally constructed in 1999 and was designed primarily to produce compound feed. It has been upgraded to a premix, farm minerals and young animal feed plant to meet the growing demand for high quality, sustainable animal nutrition products in Central and Southern China. It has a capacity of 75,000 tons and will employ 200 people.
Nutreco also opened a premix plant in Vietnam this year. Nutreco has a research partnership with the Chinese Ministry of Agriculture Feed Industry Centre (MAFIC) since 2011 and has collaborations with various universities in the region.

Nutreco delisted from Euronext after SHV takeover

Nutreco was delisted from the Euronext Amsterdam stock exchange on April 16, after a takeover by SHV Holdings.
Nutreco has been listed on the stock market for over 18 years under the ticker symbol NUO, with the initial public offering taking place on June 3, 1997. The total shareholders return over the 18 years that Nutreco was listed is 885 percent, outperforming most of the AEX and AMX constituent companies. Nutreco won the Sijthoff Prize three times for excellence in financial reporting by Dutch listed companies for its annual report, which reflects also on the openness with which the company has sought to engage with the capital markets.
“I would like to thank our shareholders for their support over the years,” said Knut Nesse, CEO of Nutreco. “Today marks the end of an important era in the history of the company. I appreciate the trust that our shareholders have placed in Nutreco, which has enabled us to successfully grow as a company and to deliver value to them and our other stakeholders.”
With the takeover by SHV a new chapter opens for Nutreco as a private company. The existing “Driving sustainable growth” strategy will be continued with the full support of new shareholder SHV.
“We will continue to provide innovative and sustainable nutritional solutions for our customers. As part of that determination we will further increase our efforts and investment in R&D. Nutreco remains fully dedicated to its mission, Feeding the Future,” Nesse said.
Over two decades, Nutreco transformed itself into a global animal nutrition and fish feed company. Divested Nutreco operations such as its compound feed activities in the Benelux, its global salmon farming operations, animal breeding activities and meat processing in the Netherlands have become part of market leaders. The company also acquired significant animal nutrition and fish feed businesses in countries such as Brazil, Canada, China, Ecuador, Mexico and Vietnam. Nutreco is fully focused on animal nutrition and fish feed with a global presence in more than 30 countries.


Nutreco CFO to leave company
Nutreco’s Chief Financial Officer Gosse Boon has announced that he will leave the company on July 1, as his responsibilities will change with the takeover by SHV. He will be succeeded by Jeroen Wakkerman, CFO at SHV Energy.
“In my years as CFO of Nutreco I very much enjoyed the responsibilities related to the specific dynamics of a listed company as well as the overall leadership of the finance function. With Nutreco delisted, these particular responsibilities will cease to exist or change substantially. Accordingly, I have decided to step down as CFO,” Boon said.

Nutreco results higher, SHV raises bid

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  Nutreco reported revenue for 2014 of EUR5.253 million (US$6 billion), up .3 percent from 2013.

  From WATTAgNet:
  Nutreco reported revenue for 2014 of EUR5.253 million (US$6 billion), up .3 percent from 2013.
  The company reported EBITA before exceptional items of EUR266.4 million, 3.9 percent higher than last year. The animal nutrition division’s EBITA increased by 12 percent to EUR125 million mainly as a result of good performances in mature markets and continued focus on higher value-added nutritional solutions.
  The fish feed unit’s EBITA increased by 2.8 percent to EUR134.3 million, mainly driven by the contribution of the operating companies in Ecuador and Egypt which were acquired in 2013. The EBITA margin decreased slightly to 6.3 percent.
  The EBITA of Compound Feed & Meat Iberia was EUR34.9 million, 14 percent lower than 2013, mainly due to lower meat prices in the second half of the year.
  Nutreco said acquisitions in Nigeria and Brazil and capital improvements in new plants in Asia and Africa will strengthen the company’s presence in growth geographies.
  "The developments in 2014 make me even more convinced that Nutreco has the right strategy and the right people in place to fulfil its mission of feeding the future," said Nutreco CEO Knut Nesse.
  Also, last week, SHV Holdings increased its offer for Nutreco, and holdout shareholders agreed to tender their shares to the new offer.
  SHV said it would offer EUR45.25 in cash for each outstanding share of Nutreco, valuing the company at EUR3.18 billion.

Nutreco completes share buy-back, new program to begin

Nutreco has completed the share buy-back program to cover future stock dividends and employee stock plans, and the share buy-back program of EUR100 million to optimize the efficiency of the balance sheet and enhance future earnings per share will now begin. 
The share buy-back program will end on January 31, 2015, unless Nutreco shares for the overall maximum amount of EUR100 million have been repurchased prior to that date. In that case, the program will end on the date on which this maximum is reached.
The EUR100 million is between 4 and 5% of Nutreco's issued share capital. The shares to be repurchased under this share buy-back program will be canceled in due course, resulting in a reduction of Nutreco's outstanding share capital.
The price to be paid for the Nutreco shares will be between the nominal value of the shares and 110% of the average closing price of the last five preceding trading days on the NYSE Euronext Amsterdam stock exchange.

Nutreco ends process to explore divestment

Nutreco has ended the process to explore a possible divestment of the compound feed and meat businesses in Spain and Portugal.
After a comprehensive process it has become apparent that at the current time no agreement at a fair valuation and in the best interests of all stakeholders can be reached. Accordingly, these Spanish and Portuguese businesses will remain part of Nutreco.
Driven by its strategic focus on the growth segments Animal Nutrition and Fish Feed, Nutreco initiated a strategic review of its Spanish and Portuguese compound feed and meat businesses in 2013. After carefully reviewing strategic opportunities for these businesses, Nutreco announced an intended divestment in February 2014.
A thorough process was undertaken, during which discussions took place with several interested parties. Nutreco continuously operated with the clear intention that any valuation for the businesses should reflect their market-leading positions, solid financial results and future potential. As these discussions developed, it became clear that no fair valuation could be obtained at the current time.
In the best interests of Nutreco's shareholders and in order to bring certainty to its employees, customers and other stakeholders, the divestment process has been halted.


New business unit
The Spanish and Portuguese businesses will remain part of Nutreco as a new and separate Business Unit Compound Feed & Meat Iberia. These businesses are well-managed, combine market leadership with operational excellence, and are cash generative. 
The new Business Unit will be led by Javier Rodriguez Ceballos, who will report directly to the CEO of Nutreco.
The Spanish and Portuguese businesses comprise Sada, which is Spain's market leader in poultry meat products with a 26% market share, the Nanta compound feed business in Spain and Portugal with a 13% market share, and Inga Food which operates pig farming and trading activities in Spain.
The first quarter operating results of the compound feed and meat businesses in Spain and Portugal improved compared with Q1 2013.

Nutreco cuts 2013 profit forecast

Nutreco has dropped its 2013 EBITA (earnings before interest, taxes and amortization) to €255 million from €262.1 million, after third-quarter animal nutrition results for the company came in down from 2012 numbers. Nutreco saw animal nutrition revenue drop by 7.1 percent, to €794.4 million, mainly due to lower volumes in compound feed and adverse foreign currency impact.
Fish feed revenue for the third quarter was 11.4 percent higher than in 2012, at €696.1 million.
"For 2013 we expect to maintain our full year EBITA margin above 7 percent in our growth segment premix and feed specialties, and we expect to improve our results in meat and other which will compensate for lower results in our animal nutrition businesses in Canada and Spain," said CEO Knut Nesse. "In animal nutrition we aim to be the leader in the development and supply of value-added nutritional solutions that are tailored to meet unique on-farm requirements. Over the last 12 months we made significant progress in developing and launching new products that give me a lot of confidence in the near future. We continue to invest in innovation and we are setting the scene for world class shrimp feed R&D. We expect to launch our sustainable MicroBalance concept for shrimp feed, which replaces expensive fishmeal by alternative protein raw materials, within 12 months."
Revenue in Nutreco's premix and feed specialties division decreased by 3.8 percent to €303.2 million (Q3 2012: €315.3 million). Organic volumes in premix and feed specialties were 0.1 percent higher. Sales prices were on average 0.5 percent lower. The revenue in the third quarter of animal nutrition Canada was €123.5 million compared to €145.7 million in 2012, a decrease of 15.3 percent. The revenue of the compound feed division decreased 17.9 percent compared to the third quarter of 2012, to €130.4 million. Lower raw materials costs had a price effect of -5 percent. Volumes decreased by 11.5 percent compared to the same period in 2012, mostly the result of lower feed volumes to farmers in the free market (not integrated) which were affected by the economic situation in Spain.
Revenue from meat and other was 0.7 percent higher at €237.3 million, due to 3.2 percent lower volumes and 5.5 percent higher prices. Active account management has resulted in an increase in sales to new customers which partly compensated for lower sales to existing customers. There was a divestment effect of -0.9 percent which related to the sale of a small poultry activity in Canada. The exchange rate effect was -0.7 percent. The operating result was higher than the weak third quarter of 2012, driven by slightly higher prices and lower input costs.

Nutreco share buy-back program hits 44,000 shares

Further to the share buy-back program announced on February 8, Nutreco has announced that during the period from February 8 through February 15, the company purchased 44,000 of its shares at an average price of €67.10 per share.
The total number of shares repurchased under this program to date is 44,000 common shares for a total consideration of €3 million. The buy-back program is being carried out in order to cover future stock dividends and employee stock plans, according to the company.
The share buy-back program will ultimately terminate on March 28, unless the maximum number of 700,000 shares has been repurchased prior to such date. In that case, the program will end on the date on which this maximum is reached and such early termination will immediately be disclosed, said Nutreco.

Nutreco rewards managers on sustainability

Netherlands-based international feed company Nutreco has revealed in its latest annual report that it will incorporate sustainability targets in the remuneration packages of its managers, including a 50% reduction in carbon dioxide emissions from operations by 2015. The company will also link purchasing of inputs to sustainability targets and vendor policy.
In 2010, Nutreco will publish its tenth Sustainability Report. Wout Dekker, chief executive officer, said, “Sustainability is becoming a more important part of our business model.”

Nutreco acquires Brazilian company

Nutreco has acquired a 51% shareholding in a Brazilian animal nutrition and fish feed company, and the new joint venture will be called Fri-Ribe.
The recently acquired company is active in the production and sales of premixes, farm minerals, compound feed, horse feed, petfood and fish feed. It consists of two privately owned companies, Fri-Ribe and Dispa, which operate under the umbrella brand of Fri-Ribe. The companies have five production plants and six sales offices spread across the central and northeast of Brazil. The companies have 400 employees and had annual revenues of EUR47 million in 2008.
Nutreco employs almost 9,300 people in 30 countries, and the company is listed on the Euronext stock exchange in Amsterdam with annual revenues of EUR4.9 billion in 2008.