NZ King Salmon’s EBITDA up by 172%

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Company saved by positive market conditions domestically and in export markets in the face of climate change.

In a report posted on Thursday, the Kiwi salmon farmer posted their financial performance for the six month period ended 31 December 2018 (1H18).

In 1H18, the company’s revenue was EUR 52 million, up from 1H17’s EUR 38.2 million. The company said this was effectively rescued by increasing demand, improved pricing mix, export market expansion and favourable exchange.

But increased costs and lower fish volumes, both caused by the higher-than-usual fish deaths in the 2017/18 summer, saw this year’s EBITDA at EUR 11.7 million, up from EUR 4.3 million the year before – an 172 per-cent increase.

Sales volume of 4392 tonnes tonnes of gilled and gutted salmon, were up 28.9 per cent from 3407 tonnes in 1H17. The company expect due to harvest seasonality and lower fish numbers carried forward from FY18.

New Zealand King Salmon CEO Grant Rosewarne described the company’s response to environmental challenges as part of our wider commitment to a more sustainable and resilient operation.

“Every business has challenges and ours is no exception. While lower salmon sales volumes were largely mitigated by value gains in our sales activities, adapting to pressing environmental changes remains a business priority moving forward.

“We believe that aquaculture can play a significant role in New Zealand’s contribution towards a more sustainable global food system. Specifically, we continue to work closely with central government to relocate several low-flow sites in the Marlborough Sounds for improved environmental, social and economic outcomes. We continue to pursue our initial investigations into open ocean farming.”

The company’s full-year performance is expected to be consistent with 2018’s FY harvest at around 8000 tonnes, the company added.