Salmones Camanchaca records 93 percent rise in operating revenue

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Higher salmon prices and increase sales volume drove the company’s Q2 results.

Salmones Camanchaca’s average sales price of Atlantic salmon was $7.81 per kg, up 48 percent from Q2 2021, translating into $22 million additional net income compared to the same period a year ago. The higher prices achieved are mainly explained by higher spot prices, combined with good product and market mix. Thus, operating revenue ended at $97.4 million, almost doubling from Q2 2021.

Ex-cage harvest costs for the quarter were $4.05 per kg, which were 17.6 percent lower than the same period last year, when operations were severely impacted by algae blooms and oxygen deficiencies. These events have to some extent also impacted costs for this quarter, as the last fish impacted by the algae bloom were harvested in April 2022. Costs are also impacted by inflationary pressure, particularly on feed.

Meanwhile, processing costs ended at $0.99 per kg, down from $1.44 per kg in Q1 2021, in line with the company’s long-term target of $1 per kg. The cost reduction is a result of higher processing volumes and positive results from implemented efficiency projects in the company’s processing plants.

EBIT per kg for Atlantic salmon was  $1.74 during the quarter, mainly explained by high salmon prices driven by robust demand, higher sales volumes and falling costs. EBIT per kg for Coho salmon was $1.62 in Q2 2022 with sales volumes of 506 MT, compared to $1.75 in Q2 2021, following good productive performance and market diversification.

Group EBITDA for the quarter was $25.7 million, compared with negative $10.6 million in Q2 2021. Operational EBIT before fair value adjustments ended at $21.2 million, up from negative $14.6 million in Q2 2021.

Biological performance continues to improve. During the quarter, biomass mortality for Atlantic salmon was 1.7 percent, reflecting that mortality is returning to normalised levels after a very challenging 2021. Feed conversion ratio for the last 12 months was 1.13, the lowest level ever for Salmones Camanchaca.

“During this second quarter, the profitability of the business returned to normal as a result of the Atlantic salmon price increase, due to a high demand and a decrease in world supply. Added to the foregoing was the improvement in costs and the recovery of harvest volume, both affected in 2021 by algae blooms and oxygen challenges. Inflationary and feed cost pressures continue and will be reflected in higher costs compare to our long-term trends estimates,” Ricardo Garcia, Vice Chairman of Salmones Camanchaca, said