UK seafood processor The Scottish Salmon Co. saw annual profits decline in 2011 after volumes fell in the second half of the year.
The company posted full-year pre-tax earnings of GBP1.5m (US$2.4m), down from GBP25.2m for 2010. Operating profit was GBP3.3m in 2011, compared to GBP26.3m a year earlier.
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The Scottish Salmon Co.’s operating profit before an adjustment for biomass was GBP14.4m, down from GBP22.5m in 2010.
Lower profits came on the back of a 2.4% decline in annual sales to GBP90.2m. However, The Scottish Salmon Co. said lower volumes in the second half of the year had hit revenues and had a “negative impact” on production costs. In the first half of 2011, The Scottish Salmon Co.’s revenues were up 32.7% year-on-year.
Nevertheless, the company said annual volumes in 2011 met targets even if, at 22,962 tonnes, they were down on the 24,516 tonnes it booked in 2010.
CEO Dr Stewart McLelland said the results demonstrated why The Scottish Salmon Co. was spending GBP40m on its production.
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By GlobalData“The year started at record levels, but the decrease in volumes in the third and fourth quarters, while anticipated, clearly demonstrate how vital it is to establish a balanced year-on-year production process. 2011 was a game of two halves illustrating both the company’s potential and the challenges of working below full production capacity,” he said.
McLelland remained optimistic about the company’s prospects. “The demand for premium Scottish salmon globally remains strong and the long term outlook is extremely positive as we open up new markets. Short term price fluctuations impact financial performance but The Scottish Salmon Company is well placed to withstand these pressures as we continue to innovate and build environmental excellence into all our operations.”
