Growth in Australian salmon consumption boosts Tassal’s earnings

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Looking ahead, diversified operations across salmon and prawns to pay off for the Hobart-headquartered Tassal.

Tassal told the Australian Securities Exchange (ASX) that it had achieved its best ever first-half results “across all key operational and financial metrics” in the six months to December 31, reports theadvocate.

EBITDA increased by 16.1 per cent to AUD 65.9 million (EUR 41.5 million) compared with AUD 56.7 million (EUR 35.2 million) a year ago. They also had record biomass with harvest up by 16.4 per cent.

Managing director and chief executive Mark Ryan said the results reflected the increase in salmon volumes, underpinned by further growth in Australian consumption per capita and “significant” fish growth.

“A significant increase in salmon growth and sales, combined with favourable market dynamics, drove strong growth in revenue and EBITDA (earnings before interest, tax, depreciation and amortisation) and a step-change in operating cash flows,” said Ryan.

“Meanwhile, we have also delivered on significant environmental programs, including eco-aquaculture and recycling and re-use, which is integral to our business model,” Ryan said.

The company expects growth in the year ahead. Last year, wholly owned Tassal subsidiary De Costi Seafoods bought prawn aquaculture operation the Fortune Group for $31.9 million. The deal involved three prawn farms, in New South Wales and Queensland.

“The company is in the most exciting position it has ever been in to deliver on its long-term growth strategy, with a strong salmon business, strong De Costi (seafood) business and attractive nascent prawn business,” Ryan said. “As a result, Tassal expects to deliver another record result in financial year 2019.”