Multiexport Foods posts higher operating income, but lower profit
Tuesday, December 03, 2019, 00:00 (GMT + 9)
Multiexport Foods reported that during the months of January to September 2019, it obtained operating income of USD 421.5 million, 17.6% higher than that reported in the same period of 2018.
The company explains this increase by a higher volume sold (18.2%), partially offset by lower sales prices.
The cumulative harvest volume to September was 68,072 tons WFE, an increase of 27.3% compared to 53,453 tons WFE harvested in the same period last year. This increase is partly explained by the higher weights of harvested fish, which averaged 5.24 kg WFE, 8% higher than those obtained in the same period of 2018.
The Operational EBIT reached USD 59.8 million, 2.9% lower than the USD 61.6 million registered in the first nine months of 2018. In turn, the Operational EBITDA reached USD 74.1 million, a figure that indicates a decrease of 1.5% year-on-year.
As for the Unit Operational EBIT of Atlantic salmon, this registered a value of USD 0.93 / kg WFE, 18% lower than the USD 1.14 / kg WFE registered during the same period of 2018. The decrease in the result is given for the lower sales prices obtained during the last two quarters compared to those registered in the same period of 2018, and for a slight increase in ex farm costs, mainly due to the harvest of groups of fish affected by harmful environmental conditions in the past summer and autumn.
Multiexport Foods reported that the consolidated profit for the period was USD 42.2 million, 19.1% (USD 9.9 million) lower than that reported in the same period of the previous year. This decrease is mainly explained by the lower fair value adjustment in the period, USD 9.9 million lower than the one made at the end of the third quarter of 2018, due to a lower average reference price at the end of this quarter.
Regarding the results of the third quarter, the company reported that its operating income reached USD 134.1 million, a figure that represents an interannual increase of 28.2%. This increase is mainly explained by a higher sales volume of 21,468 WFE tons of own raw material, 37.7% higher than that reported in the third quarter of 2018, offset by lower sales prices.
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The total harvest increased by 49% compared to the third quarter of 2018, highlighting the higher harvest weights, which averaged 5.23kg WFE for Atlantic salmon and 3.07kg WFE for coho salmon (against 4.75kg WFE and 3, 05 kg WFE respectively, in the same period of 2018).
Operational EBIT reached USD 5.5 million, lower than USD 14.2 million in the same quarter last year.
In turn, the Operational EBITDA reached USD 10.5 million, lower by USD 8.4 million (-44.5%) as recorded in the third quarter of 2018. The lower result is explained by lower sales prices and higher ex-farm costs, product of the harvest of a neighborhood with unfavorable productive results due to the challenging environmental conditions in the last summer and autumn, which represented almost half of the harvests of the trimester.
The consolidated profit for the period was USD 5.8 million, which is USD 14.1 million lower than that reported in the same period of the previous year. This decrease is largely explained by the lower fair value adjustment, USD 11.3 million lower than the one made at the end of the third quarter of 2018, due to a lower average reference price at the end of the current period.