Russia’s largest aquaculture company funded major investments with operating cash flow.
The salmon farmer which has operations in the Barents Sea in the Murmansk region, posted its financial results for FY 2019.
Revenue increased from 2018’s EUR 40 million to EUR 109 million.
Adjusted EBITDA more than tripled to EUR 42 million from EUR 12.1 million.
Investments amounted to EUR 31.1 million. “Significant investments included a project to increase smolt factory capacity, the purchase of a second live-fishing vessel and a barge for the mechanical delousing of fish, new cages and other fish-rearing equipment,” it wrote.
“Russian Aquaculture was successful in achieving its objectives in 2019. Thanks to the systematic implementation of our strategy, we managed to attain a high degree of financial and operational sustainability. We were able to make major investments which were almost completely funded by operating cash flow,” said Russian Aquaculture CEO Ilya Sosnov.
On how the coronavirus will affect its market, Sosnov wrote that “it was too early to say”. Last year SalmonBusiness wrote about how China was of paramount importance to its long-term strategic perspective to reach 35 thousand tonnes by 2025.“It is very risky for us to only sell our fish the Russian market. Therefore the Chinese market is certainly important to us for the long-term strategic perspective. I think the Chinese market will be the largest market for salmon consumption in the world,” he said at the time.