Coast Seafood continues to flourish, and last year achieved sales for almost €450 million. However, very few exporters can lay claim to a more successful operation than the Western Norwegian firm.
A profit margin of 2.3 percent, based on purchases and sales of fish, is solid, and places Coast Seafood in the upper echelon of Norway’s seafood exporters.
Pre-tax profit improved by 25 percent from 2016 to 2017, and owner duo Sverre Søraa and Martin Øvrebø are paid €2.6 million as an extraordinary dividend payment.
Freedom of action
At the close of the year shareholder equity amounted to €50.1 million, which equates to an equity ratio of 59.5 percent.
“The unique freedom of action provided us in a financial context, is something we employ actively, to strengthen our position on the market in the future”, Coast Seafood wrote in a press release.
“Historically speaking, 2017 has been characterised by a high level of activity in the markets, due to the demanding situation experienced by our customers. The industry has achieved the highest market prices of all time, and the various market segments will need time to be able to absorb it all”.
“Pelagic fish are becoming increasingly important for the company and we will continue investment accordingly in Måløy Seafood, so we can adjust in terms of capacity to the suppliers (fleet side). The company is also investing in white fish, to further complement the seafood portfolio. Coast Seafood’s strategy is to be a part of the continual restructuring process that is taking place in the seafood industry. There is a need, on the part of the independent companies, for a strong sales company, which can look out for the interests of the small and medium-large players. Coast Seafood is currently the foremost promoter for these independent producers”.
“Our focus is on creating worth from every kilo of product sold, as well as engage in innovative marketing on behalf of our partners. Additionally, we see that our customers are wanting independent companies that are always eager to grow, as an alternative to large vertical systems. We will be making further investments in small and medium-large family-owned marine farming companies, which can supply first-class quality fish to our customers. Moreover, we can state that most of our suppliers are among the most efficient producers in Norway. Combined with our effectiveness in the sales segment, provides us with a huge cutting edge, which our customers really appreciate. Due to the hefty increase in sales, cost efficiency at Coast Seafood is now at its highest level ever”, Coast Seafood wrote in its press release.
In the meantime 2018 has so far been a demanding year, for Coast and other exporters.
“The beginning of the year has for most of us been more difficult, as all analyses concluded a lower level of prices. The market stunned yet again and appears to extremely robust for the future. This bodes well for good/high, stable prices in the time ahead,” Managing Director Sverre Søraa wrote in an e-mail to SalmonBusiness.