July 31, 2008

Nutreco's H1 profits expected to rise 27 percent in H1 2008

The company is expected to report operating profit of EUR 60 million on sales up 27 percent to EUR 2.1 billion.

The firm's animal feed business saw a jump in sales this year as record grain prices meant more farmers selling their crops instead of using them as animal feed. This meant they had to use more manufactured feed from companies such as Nutreco to feed their livestock.

However, the analysts expect poorer sales of fish feed, due to the disease situation in Chile, one of the world's largest producers of farmed salmon. Millions of salmon are believed to have perished due to disease there.

Nutreco is the world's largest fish feed producer and No. 5 animal feed producer.

Nutreco is also expected to confirm its medium-term target of full-year operating profit of EUR 230 million by 2010, twice that achieved in 2006.

The Dutch firm has gone on an acquisition spree in recent years to boost its presence in emerging markets.