The Scottish Salmon Co. has reported a profit for the first nine months of the year, despite third-quarter income being hit by downward pressure on salmon prices.
For the first nine months of the year, Scottish Salmon reported a net profit of GBP10.6m (US$16.7m) compared with a profit of GBP45,000 for the same period last year.
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EBITDA increased to GBP14.8m compared with GBP9.8m year-on-year. Sales also increased to GBP95.1m, versus GBP60.9m in the first nine months of 2013.
However, during the third quarter, in addition to the challenge created by the Russian trade sanctions, warmer waters resulted in higher levels of mortalities and treatment costs.
“These factors have had the dual effect of increasing supply and putting downward pressure on prices, and together with the remote locations of the harvesting sites, have suppressed EBIT/Kg,” the firm said in a statement.
“We reported at half-year on the fall in spot prices near the end of Q2. This trend continued in Q3, due to the high supply of salmon across the industry which has been well documented.”
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By GlobalDataA GBP4.7m adjustment on biomass led Scottish Salmon to report a third-quarter loss of GBP4.6m. In the third quarter of 2013, the company ran up a loss of GBP1.8m.
The group, which exports to 21 countries, made an EBIT loss of GBP4.5m, versus an EBIT loss of GBP1.1m a year earlier.
The biomass adjustment was “consistent with the higher harvested volumes in the period”, which almost doubled year-on-year. Revenue jumped from GBP18.4m a year ago to GBP33.6m.
