Tassal CEO: “Demand both globally and domestically is expected to be strong and there is limited global supply growth”

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Tassal increased revenue by 43.3 per cent to AU$419 million (€264 million) in the six months to December 31, compared with the corresponding period a year earlier. It also managed a 10.3 per cent increase in half-yearly net profit after tax to AU$31.2 million (€20 million).

The company said it was targeting growth for its salmon and prawn businesses in the current financial year and salmon markets had positive pricing and volume outlooks.

“Demand both globally and domestically is expected to be strong and there is limited global supply growth,” Ryan explained.

“The improved salmon pricing environment and optimising sales mix has underpinned the strong growth in revenues.”

The company said it had completed its salmon expansion program, with overall salmon capex spending targeted to decrease from financial year 2021-22.

“Salmon capital for the mid-term will be focused on maintenance spend,” Ryan said.

Tassal said the size of its “sustainable” annual harvest from existing marine leases meant it no longer needed “incremental” funding to grow.

“The focus is now on targeted price, sales mix, cost optimisation, brand building and product innovation initiatives to offset any increases in supply chain costs and drive future returns,” it said.

Ryan described salmon biomass and harvest size as stable.

“With the end of the salmon growth capital spend, reduction in frozen salmon inventory and a sustainable and maintainable circa 40,000 hog (head on and gutted) tonnes annual harvest for salmon, together with a more efficient and effective capital and working capital cycle from prawns, we are focused on targeting further growing cashflows and reducing debt,” he said.

Ryan said the balance sheet was sound and Tassal was starting to reduce debt.