Negative operational EBIT.
A sharp decline in market prices in the quarter due to Covid-19 impacted total revenues which increased by 3.6 per-cent. 30 per-cent loss of Islotes site’s biomass in the quarter due to extreme weather, impacted bottom line by an estimate of USD 4.1 million net of insurance.
Salmones Camanchaca reports a 49.5 per-cent increase in harvest volumes during the second quarter of 2020, compared to same period 2019, reaching a total volume of 10,670 tons WFE in the quarter. Substantially higher sales volume was though offset by lower prices in the quarter due to the weaker food service demand in the Covid-19 situation.
Operational EBIT in Q2 2020 was negative USD 9.4 million, or USD 11.2 million lower than in Q2 2019.
Commenting on the performance of Salmones Camanchaca in these pandemic times, vice chairman Ricardo García, said: “Covid-19 is still around us, and therefore our people’s safety remains a high priority. With that, Salmones Camanchaca will preserve its business continuity and deliver high achievements soon. I am pleased to report that all sanitary and protection measures across the organization are proven effective and consequently, there are so far only 1.5 per-cent Covid-19 cases in Salmones Camanchaca, and operation has been running throughout these pandemic times”.
“The sharp fall in market prices has of course affected our sales and profitability in the short term, but we remain confident about the position of Salmones Camanchaca and on the beauty of salmon as a highly nutrient and exquisite food. As a leading supplier of Chilean high-quality salmon, we are ready to serve the growing market for Atlantic salmon for many years to come. In the meantime, Salmones Camanchaca is financially healthier than ever before to navigate through Covid-19.”
The company estimates harvest volumes of 51,000-53,000 tons for Atlantic salmon and 3,000 tons of Coho in 2020.
