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Danish feed producer's profit slips on volatile currencies

The year was marked by investments in new production lines, plants. 

Danish feed producer Aller Aqua Group reported a healthy financial year despite a drop in its full-year net profit, impacted by the currency devaluations in Egypt and Nigeria.

Net profit declined from DKK 65 million (€8.7 million/$10.3 million) to DKK 53.1 million (€7.1 million/$8.4 million) year-on-year, which the group considers satisfactory.

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Operating profit increased from DKK 46.1 million (€6.2 million/$7.3 million) to DKK 69.1 million (€9.3 million/$10.9 million), while gross profit amounted to DKK 123.4 million (€16.6 million/$19.5 million), up from DKK 102.1 million (€13.7 million/$16.1 million).

Net revenue increased from DKK 739.4 million (€99.4 million/$116.7 million) to DKK 944.1 million (€126.9 million/$149 million) year-on-year.

The year was marked by several investments. An expansion of Aller Aqua's production capacity in Egypt was initiated, which was concluded in May this year.

It also kicked off an investment in the construction of a new factory in Zambia, which is slated to open this fall.

The company also invested in a new feed production plant in Qingdao, China.

Development of feed and other R&D initiatives were focal points in 2016, as in the previous year, the board wrote in its annual report.

In 2016, the investment to expand the research facility in the company Aller Aqua Research was completed and is now running. The research facility will be a "significant element in the R&D work for the entire group."

Aller Aqua expects a positive profit development for the coming years, the board said.

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