The Scottish Salmon Co. has reported "challenging market conditions" in the second quarter that have contributed to a loss during the first half of the year – and warned its forecast on volumes could be lowered by 10%.
In the three months to the end of June, the company made a loss of GBP3.9m compared with a profit of GBP7.6m. EBIT before the fair value adjustment on biomass was GBP2.4m, down from GBP4.9m in the second quarter of 2014.
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Sales declined 7.7% to GBP31.2m.
The Scottish Salmon Co. pointed to lower harvested volumes, continued price volatility and fluctuating exchange rates. The group said spot prices for fish had "fluctuated significantly" in the second quarter.
For the six months ended 30 June, the firm posted a net loss of GBP4.8m (US$7.4m) compared with a profit of GBP15.3m year on year. EBIT before the fair value adjustment on biomass stood at GBP7.1m, compared with GBP9.1m in the first half of 2014.
Results were impacted by a higher fair value adjustment on biomass, higher taxes and lower sales.
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By GlobalDataHowever, sales in the period also fell, sliding from GBP61.4m a year earlier to GBP58.5m.
The firm viewed the first-half results as "stable" but said on the back of unprecedented price volatility, the prevailing exchange rate and biological challenges, it was reviewing its annual forecast and anticipates previous volume guidance will be revised downwards by approximately 10%
