Russian Aquaculture Q1 EBIT down 11%

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Lower market prices.

The Russian salmon farmer Russian Aquaculture posted its Q1 results on Tuesday.

Operating EBIT at EUR 14.3 million was down 11 per-cent from the period before.

Revenue increased by 12 per-cent to EUR 44 million, up from EUR 39 million a year earlier. Revenue gains were driven by increased sales volumes. At the same time, the average sales price declined from the previous year. The main factors driving the decrease were the high base effect in 2020 and a reduction in the share of superior-category products in the sales structure in Q1 2021.

“We started the year on a strong note, achieving excellent results. We enjoyed considerable increases in the volume of harvest and of sales of finished product, received two new fish farming sites and completed a deal to increase our stake in our fish processing plant to 100 per-cent. The availability of proven primary processing facilities is an important link in our business model and another step towards the implementation of our strategy to create the largest vertically integrated player in the aquaculture sector,” said Russian Aquaculture CEO Ilya Sosnov.

In the quarter, Russian Aquaculture invested EUR 15 million, most of which was used to finance the acquisition of a new feed barge with fish farming equipment, a dry-cargo vessel and a large catamaran for service operations.

In March, the company successfully placed three-year bonds totaling EUR 34 million with an annual coupon rate of 9.5 per-cent. The coupon is paid every six months, and the maturity date is 6 March 2024.

Based on the company’s 2020 and 1Q 2021 results, the board of directors recommended distributing net profit and paying dividends in the amount of RUB 5 and RUB 4 per ordinary share, respectively.