Nireus reports record fish sales in volume and value

NIREUS achieved the highest fish sales in the history of the Group to date, benefitting from the well-positioned geographic distribution of its sales network, strong demand for seabass and seabream and rising prices. In the 6 months of 2010 fish sales amounted to € 70.7 mi. (up 17.9%) and 15.6 thousand tons (up 11.1 %). In the second quarter, the growth in fish sales was 26.9 % in value and 14.7 % in volume over the same quarter last year, reports www.megafishnet.com with reference to Nireus.

o Overall group sales in the first semester of 2010 amounted to € 92.7 mi., posting a growth of 9.7 %, and € 52.4 mi. in the second quarter, sharply up by 18.5%, over the comparative last year's periods.

o The average sales price for bass and bream was improved by 6.1% in the 6 months and 10.6% in the second quarter over the comparative last year's periods.

o Net income available to equity holders of the parent was impacted by a write-down in assets in affiliate company Marine Farms (NIREUS holds 30.2%). This contributed a negative € 0.7 mi. to the net earnings versus a positive €0.7 last year.

Εarnings after tax and minorities declined to € 1.3 mi. from € 1.6 mi., excluding an one-off social contribution levy of €0.6 mi., imposed by the Greek government on profitable companies.

o Rising prices and strict cost management improved the gross margin by 180 bps despite rising raw material prices and higher transportation costs.

o Net interest bearing debt (€245 mi.) and cash balances (€ 15 mi.) remained at the same levels.

Mr. ARISTIDES BELLES, CHAIRMAN AND MANAGING DIRECTOR OF NIREUS, COMMENTED:

"We are pleased that the demand in the industry remains strong and that the price of seabream has recovered solidly, confirming our previews expectations.

In the first semester of 2010, NIREUS group achieved a new record in fish sales, both in volume and value.

These achievements will not deter us, in any case, from our two strategic goals: cost reduction and improvement of cash flows."

CAPITAL EXPENDITURES

Net investments totaled € 1.9 mi. in the first semester of 2010, compared to € 6.1 mi. in the first semester of 2009.

ECONOMIC OUTLOOK

• Development in demand for the Group's main products, seabass and seabream, has been extremely positive so far in 2010. The on-going situation in Greece is not expected to have a material effect on fish sales, since 90% of the fish produced by the Group is exported.
• The price of seabream and seabass has steadily improved as inventories are reduced and a better balance between supply and demand is gradually established. Starting in 2009 there was a decline in the input of new juveniles and biomass growth and this has led to reduced supply and better pricing in 2010. NIREUS expects that the prices will improve further over the next few years, since the previous low prices and the current challenging credit environment in South Europe have limited growth of new supply.
• The prices of raw materials for fish feed and transportation costs are expected to be higher in 2010.

COMPANY PROFILE

NIREUS is the largest producer of Mediterranean aquaculture with a top ranking position in all of its business:

market-size fish, juveniles, fish feed. The group is fully vertically integrated and operates 67 fish farms, 5 hatcheries, 3 pre-fattening units, 1 R&D center, 1 genetics center, 17 packaging plants, α fish processing plant, 2 fish feed factories, a company producing fish farming equipment and a company selling genetic material, equipment, nutrition and health products to aviculture and animal culture. The Group is export oriented and ranks 1st in total exports within the Greek food industry. Additionally, it is the largest shareholder (with a 30.2% interest) in the Norwegian company Marine Farms ASA that is listed in the Oslo Exchange and produces salmon in Scotland, seabass and seabream in Spain and the tropical fish cobia in Central America and Vietnam.

NIREUS follows principles of social responsibility and sustainability and is certified with ISO 9001: 2000, ISO 14001: 2004 and ISO 22000: 2005.