Chilean salmon farmer Australis hit hard by lower prices and higher costs.
Company first-quarter EBITDA before fair value came in USD 12.2 million, a dramatic slip from USD 45.2 million in Q1 2017. The revenue also dropped in the same period, from USD 110.6 million to 78.2 million.
According to the Q1 report from the company, lower salmon prices and higher distribution and administrative costs were the reasons for the disappointing result. The salmon price dropped with 19.1% compared to Q1 2017, and the price of trout was down 14.6%.
“The cost of selling Atlantic salmon increased by 21.2%, mainly due to the increase in the tons harvested from the Magallanes region, whose cost of harvest and process was higher in the period,” the company stated in their financial report, adding that the cost of producing trout remained stable.
Harvesting volumes for salmon reached 8,793 tons in Q1 2018. In Q1 2017 the volumes reached 10,469 tons.