The Scottish Salmon Company PLC Q3 2011 Results
THE SCOTTISH SALMON COMPANY ON COURSE TO MEET YEAR END TARGETS
Highlights
· The increase in global supply resulted in a downward shift in sales spot prices which was moderated throughout the quarter through contractual arrangements
· Unit costs were affected by lower harvest volumes due to a cyclical production imbalance and the harvesting from recently acquired smaller remote sites
· Strong focus on site development to meet customer requirements for consistent production, increased volume, balanced production and improved unit costs
· Extension of external financing of £40m to fund our strategic growth plan
· EBIT before fair value adjustment was £688K, £0.15 per Kg on the 4,686 tonnes harvested in the quarter
The Scottish Salmon Company has lodged Q3 results, reporting that the company, which farms solely in Scotland, is on course to meet year-end targets.
Net operating revenue for the quarter of £17.8m (Q3, 2010, £20.6m) brought year-to-date turnover to £74,923m (YTD 2010, £63,663).
As expected, sales volumes of 4,686 tonnes represented a reduction on the same quarter last year (Q3, 2010, 5,468 tonnes) due to an imbalance in production cycles. This is currently being rectified with £40m funding in place to develop new and existing sites.
Outlook for the year remains 23,000 tonnes with 5,000 tonnes planned for harvesting during Q4 2011.
Profits were impacted by the dramatic drop in traded sales prices globally (EBITDA before fair value adjustment of Biomass Q3 2011, £0.7m; Q3, 2010, £4.8m), however, The Scottish Salmon Company maintains a strong contract position with over 70% of the volume contracted with long-term partners.
With an exceptional biological track record, the Company's directors report that these relationships are underpinned by the continued high quality and nutritional value of the Company's salmon.
Bill Hazeldean, CEO at The Scottish Salmon Company said:
"The key focus for the Company is to grow and develop production volumes to ensure consistent supply, year on year, through all stages of the farming cycle. By doing this the Company can meet the requirements of its customer base and ensure long term sustainability.
"Going forward demand for Scottish salmon is anticipated to remain strong with a well-established strong domestic market and developing export market.
"Our operations are running to plan and with funding in place for continued development we are confident of meeting our strategic objectives."
Further Information: The Scottish Salmon Company is the leading Scottish-based producer of Scottish salmon, providing superior quality Scottish salmon to local and international markets. It currently produces more than 20,000 tonnes per year, over 20% of the total Scottish production.
The company is engaged in all stages of the value chain of farming Scottish salmon, from smolt production to harvesting, processing and sales, in Scotland. It owns 40 sites on the Hebrides and West Coast of Scotland including two processing plants.
The Company currently employs over 350 people, many of whom live in remote rural communities.
The Company was named Best Marine Aquaculture Company 2011 at the Scottish Marine Aquaculture Awards, sponsored by the Crown Estates.
It is listed on Oslo Bors stock exchange.
www.scottishsalmon.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.