The Scottish Salmon Company PLC Operational Update Q3 2017
November 21 2017 - 01:00PM
Record
revenues driven by continued high prices and increased
volumes
Highlights
-
Record quarterly revenue of £39.0m (Q3 2016:
£25.2m), driven by continued high prices and increased harvest
volume
-
Mortalities and accelerated harvesting impact
costs
-
Successful positioning of premium brand by
addressing high-end segments with export focus. Exports to
North America increased to 6% (Q3 2016: 0%)
-
Upheld 2017 volume of 25,000 tonnes, anticipate
26,500 tonnes in 2018
Key financials
|
Q3 2017 |
Q3 2016 |
YTD 2017 |
YTD 2016 |
FY 2016 |
Net
operating revenues |
39 031 |
25 150 |
111 050 |
82 712 |
109 921 |
EBITDA |
6 723 |
(1 401) |
30 016 |
7 765 |
8 939 |
EBIT
before fair value adjustments |
4 747 |
(3 392) |
23 932 |
1 667 |
672 |
Equity
ratio |
60 % |
56 % |
60 % |
56 % |
55 % |
NIBD |
35 814 |
36 464 |
35 814 |
36 464 |
42 904 |
Harvested
volume |
6 781 |
5 486 |
18 398 |
18 609 |
24 342 |
EBIT/kg before fair value adjustments |
0.70 |
(0.62) |
1.30 |
0.09 |
0.03 |
Status and outlook
-
Revenues for the third quarter 2017 were £39.0m
(Q3 2016: £25.2m) on harvested volumes of 6,781 tonnes (Q3 2016:
5,486 tonnes). Increased revenue was driven by higher harvesting
volumes and higher prices vs Q3 2016. Prices constrained due to
harvesting smaller sizes and accelerated harvesting as a result of
biological issues experienced at the end of the quarter during the
period of seasonal warmer temperatures.
-
Cost/kg were impacted by mortalities and lower
harvest mean weights, as a result of accelerated harvesting,
compared to H1 2017. The mortalities were accounted for as
they occurred. Higher costs from mortalities continue into Q4
and may continue to affect costs into 2018.
-
Focus remains on the biology of the salmon with
continued use of the hydrolicer and freshwater treatment trials
have shown encouraging results. Ongoing stocking of cleaner
fish throughout all sites and further development of site specific
health planning have contributed to improved management of these
issues.
-
The development of the Company's processing
platform is the core element of the quality growth
strategy. This has continued with the introduction of a new
filleting facility in the south. In addition to improving overall
operational efficiency and product utilisation, the new line will
improve flexibility and strengthen consistent and valued
service.
-
Export sales accounted for 48% of value in Q3
2017, compared to 42% in Q3 2016, demonstrating the effective
strategy of driving export growth. Underpinning the strategy is the
focus on: partnerships with key customers, identifying niche export
market opportunities, developing the product range and regional
brand development. The Label Rouge and Native Hebridean brand
values are built on the core competencies of provenance and
quality, recognised for their premium positioning.
-
The outlook for continued strong demand and
limited global supply growth paves the way for continued firm
prices throughout the remainder of 2017 and into 2018. The
Scottish Salmon Company reiterates target to harvest 25,000 tonnes
in 2017 and guides on a harvest volume of 26,500 tonnes in
2018.
CEO comment
Craig Anderson, Chief Executive Officer at The
Scottish Salmon Company, said:
"We remain committed to our
long-term strategy to grow our business and to produce the finest
Scottish Salmon produced in a sustainable way. During the third
quarter, we continued to develop our operations, investing in
operational efficiency and capacity."
"We continue to pursue our
ambitions to drive export growth and develop our premium brands
with a focus on provenance. The Scottish Salmon Company has
successfully developed the market further for Native Hebridean
salmon. The innovative success of being recognised recently
in winning three Food & Drink awards."
"The continued success and drive
to develop and grow our business requires involvement from all
employees. SSC has experienced staff, and is committed to their
continued development, which, in turn, will continue to drive the
organisation forward."
"Demand for Scottish salmon as a
premium food continues and we will capitalise on this through
market development and ongoing brand development built on our core
competencies and heritage as already showcased by our Label Rouge
and Native Hebridean brands."
Financial calendar
The Company will release its full year 2017
results on Monday 5 March 2018.
For more information, please
contact:
Su Cox, Investor Relations
e-mail: su.cox@scottishsalmon.je
Notes:
The Scottish Salmon Company is the
leading producer of premium salmon with operations only in
Scotland. The Company is engaged in all stages of the value
chain from smolt production through freshwater and marine farming
to harvesting and processing, as well as sales and marketing
activity. It is dedicated to producing the highest quality
Scottish salmon.
All of The Scottish Salmon
Company's farms and processing facilities are audited and approved
by the internationally acclaimed GlobalG.A.P. Accreditation scheme,
which includes excellence in fish husbandry and animal welfare.
The Scottish Salmon Company
supports the development of health and wellbeing in the local
communities in which staff work and live. Over 500 people are
employed by the Company, approximately 230 of whom are in the
Hebrides, with its head office in Edinburgh.
The Scottish Salmon Company
Limited is a subsidiary of The Scottish Salmon Company PLC, which
is listed on the Oslo Børs stock exchange.
This information is subject
to the disclosure requirements pursuant to section 5 -12 of the
Norwegian Securities Trading Act.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: The Scottish Salmon Company via Globenewswire
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