Nutreco Cuts Profit Target as Salmon Feed Weighs on MarginsAndrew Noel
Nutreco NV, the world’s largest supplier of fish feed, cut its forecast for profit this year amid a “challenging market” for products for salmon that eroded margins in Norway.
The supplier of Skretting shrimp and fish feed predicts that earnings before interest, taxes and amortization will total about 255 million euros ($345 million), down from an earlier target of at least matching last year’s 262.1 million euros, the Amersfoort, Netherlands-based company said today in a statement.
Chief Executive Officer Knut Nesse is introducing products to expand in faster-growing markets such as shrimp and diversify away from salmon. Nutreco is looking at the sale of a compound-feed division in Spain, while pursuing more business in Latin America, Russia, Asia and Africa.
Third-quarter sales rose 0.7 percent to 1.49 billion euros, Nutreco said today.