Scottish Salmon Company reports improving operating profit

News
1509

The Scottish Salmon Company (SSC) achieved an operating profit before value adjustments of biomass of £19.2m in first half 2017, equivalent to £1.65 per kilo. In the second quarter of 2017, the result was £9.7m, equivalent to £1.65 per kilo.

The company also reports a record half year revenue of £72m.

Craig Anderson, Chief Executive Officer at SSC, said:

“Demand for premium quality Scottish salmon across the globe has never been higher and we have maximised the opportunities this provides, evidenced by a record half year performance.”

Mortality
The cost per kilo is still affected by exceptional mortality in H2 2016, and this is also expected to affect costs in 2017.

Harvest volumes in H1 2017 were 11,617 tonnes, down from 13,123 tonnes in H2 2016.

The decline in volume is due to bringing harvests forward in H2 2016, reducing availability for 2017.

The company expects harvest volume to be around 25,000 tonnes at the end of 2017.

Export
The company continues to progress its export strategy, with increased activity in North America and the Far East.

“Export sales have risen exponentially in key territories like Japan, where we have just exhibited at the Seafood Expo. The response to our products has been overwhelmingly positive, particularly our unique Native Hebridean Salmon which has such a strong provenance story,” said Craig Anderson.

The company says it continues to focus on long-term thinking, but in short term it expects high prices and high demand to continue into 2018.