Omega Protein's remarkable share price trend reflects its recent focus on human nutrition
SEAFOODNEWS.COM [Motley Fool] By Mark Lin - July 25, 2014 -
Omega Protein, North America's biggest producer of Omega3 fish oil, fish meal, and specialty protein products, has significantly outperformed the benchmark index over the past year. While the S&P 500 increased by 16.4% during the past 52 weeks, Omega Protein's share price soared by 45.3% over the same period.
Although Omega Protein's revenue from the animal nutrition segment came in essentially flat year on year, its human nutrition business saw revenue grow approximately 40% in 2013 to reach $31 million and accounted for 13% of its top line. This has given investors confidence that Omega Protein has positioned itself well to capitalize on the huge growth opportunities in this market.
Omega Protein has engaged in a series of acquisitions over the past few years to expand its presence in the human nutrition business.
As for Omega Protein's animal nutrition business, while volumes declined by 22% in 2013 as a result of a lower fish catch, a 30% increase in revenue per ton compensated for this. Omega Protein raised its selling prices for fish meal and fish oil by 19% and 15%, respectively, in 2013. This made the most significant contribution to Omega Protein's record gross margin and EBITDA margin of 34% and 31%, respectively.Full Story »