Margins under pressure at large Norwegian salmon exporter.
Bravo Seafood, located in Floro (Norway), sees big profits fall from 2016 to 2017. The company reported a decline in profit before tax to 883,435 euros, from 1,87 million euros in 2016.
Over the same period, revenue declined 14.4%.
“2017 was probably a normal year for Bravo Seafood, while 2016 was a very good year,” said CEO Karl-Petter Myklebust to Salmonbusiness.
The company achieved an operating profit of 0.9%, displaying a trend in the past years: Margins and profitability are under pressure.
“It’s no secret that there is hard competition in the export business. We try to be cost-effective. This is the part we can influence the most, since we must be competitive in buying and selling,” said Myklebust.
Also dividend payments were drastically cut, from 1.37 million euros in 2016 to 662,577 euros in 2017.
On the bright side, 2018 is looking promising.
“The volume has been ok, and profitability looks good,” concluded Myklebust.