Tassal Group Ltd. achieved net profit after tax of AUD 19.3 million (EUR 12 million; USD 13.6 million) for the six months ended 31 December 2015, an increase of 4.7 percent year-on-year.
For the same period, the Australian salmon producer’s operational earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 11.2 percent to AUD 41.3 million (EUR 25.7 million; USD 29.1 million), which it attributed to additional earnings from seafood sales as well operational efficiencies and sustainable contribution margins generated from salmon sales in the domestic market.
The operational EBITDA increased despite lower fresh salmon head-on gutted (HOG) pricing from the wholesale market and an overall higher cost of fish production – due to the higher feed costs for the harvested 2014 year class, as well as costs relating to the integration of De Costi Seafoods, which it acquired last year.
Revenue was up 50.2 percent to AUD 226.8 million (EUR 141 million; USD 159.6 million), reflecting continued growth in its salmon business combined with a full six months of De Costi Seafoods.
“Following the acquisition of De Costi Seafoods, Tassal is now Australia’s leader in the AUD 4.3 billion (EUR 2.7 billion; USD 3 billion) salmon and seafood market, selling highly recognized ethical brands to Australian consumers and retailers,” said Mark Ryan, managing director and CEO of Tassal.
The Tassal’s financial and operating performance over the first half of the 2016 financial year was “generally in line with the company’s expectations” and that the business is “well placed” to continue growing earnings and optimizing returns, he said.
“Our focus on growing domestic market per capita consumption continues to be the right strategy for Tassal as it underpins the company’s product and sales initiatives driving continued revenue and earnings growth.
“Our overarching focus for FY2016 is to increase domestic salmon and seafood consumption, while ensuring that we maximise salmon and seafood returns. This will involve focused sales initiatives to maximize the opportunities to grow salmon and seafood across the domestic market combined with operational initiatives focused on further optimizing the supply value chain.
“We have the right foundations in place to leverage this opportunity,” said Ryan.
