Higher costs and low prices eat into Multiexport’s earnings despite growth in sales and volume

News
259

Unfavourable weather summer conditions during summer 2018, coupled with lower market prices, hit Chilean salmon farmer.

In a 2018 year financial statement posted on Thursday, Multiexport’s recorded operating revenue of USD 537.2 million, 5.6 per cent higher compared to 2017. This increase was mainly explained by higher sales volume. During 2018, 82.850 tonnes were sold, representing an increase of 10.1 per cent over the previous year. Out of that, 71,058 tonnes of Atlantic salmon (an increase of 9.8 per cent) were sold.

2018’s EBITDA was USD 116 million, down 17 per-cent from USD 140 million the year before. In 2018, the price of its Atlantic Salmon dropped to 1.15 USD/kg from 1.74 USD/kg in 2017.

The company attributed lower margins to “unfavourable weather conditions during summer 2018, coupled with lower market prices.”

“This result reflects the growth and consolidation of our operations, together with the conditions of sanitary and productive stability registered by the national salmon industry, following the application of better practices in crops and regulatory changes,” said Andres Lyon, general manager of Multiexport, in a press release accompanying the report