The Scottish Salmon Company staff. (Photo: Scottish Salmon Company)
Scottish Salmon Company increases revenues thanks to higher volumes and prices
Friday, May 11, 2018, 22:40 (GMT + 9)
The Scottish Salmon Company (SSC) obtained net operating revenues amounting to GBP 43.4 million (USD 58.7 million) the first quarter 2018, which is 23.6 per cent higher than that in the corresponding period last year, mainly aided by high harvest volumes and strong prices.
The salmon farming firm reported harvests volumes amounting to 7,136 tonnes in the first three months from 5,685 tonnes in the first quarter in 2017.
"Our long term strategy to grow our business and to offer premium branded quality products produced in a sustainable way remains. Harvest volumes during the first three months of 2018 increased for the fifth consecutive quarter," highlighted Craig Anderson, SSC Chief Executive Officer.
In addition, from the first quarter this year SSC changed its basis accounting estimate for mortalities to be more in line with its competitors and decided that only exceptional mortality will be booked as incurred, which, in the company Board’s view, will lead to transiently low mortality costs in 2018.
SSC obtained an EBIT per kg before fair value adjustment at GBP 1.83 (USD 2.47) from GBP 1.67/kg (USD 2.26) in the corresponding quarter in 2017.
The firm pointed out that mortalities have reduced since the last quarter due to colder sea water temperatures since the start of the year and initiatives taken to improve the biological situation.
The firm’s export volumes accounted for 61 per cent of total sales during the period, which is an increase from 47 per cent in the first quarter in 2017.
During the analysed quarter Lochlander salmon was successfully introduced to the North American market and exports to markets outside Europe increased to 20 per cent.
SSC Board stressed that the company will continue its focus on operational and biological improvements and that the anticipated harvest volumes remain at 26,500 tonnes in 2018.
During the analysed quarter, SSC was awarded Best Aquaculture Practice (BAP) certification for all its marine sites.