Grieg Seafood on Friday posted its first-quarter results, including an operating profit of NOK 131.6 million, up from NOK 115.4 million in the first quarter of 2010.
The Norwegian company attributed its “considerably improved margin” to a lower harvest volume; it produced 11,879 metric tons of salmon in the first quarter of 2011, down 34.4 percent from the first quarter of 2010.
“The strong salmon market was maintained in the first quarter, characterized by a tight supply side and continued good demand,” said Grieg. “Because of this, seasonally record high prices were recorded in all markets.”
Grieg’s pre-tax profit amounted to NOK 285.2 million, and cash flow from operations totaled NOK 216 million in the first quarter of 2011.
The company’s operational EBIT (earnings before interest and taxes) came to NOK 11.08 per kilogram, almost double last year’s total of NOK 6.38 NOK per kilogram.
Looking ahead, Grieg said, “The salmon market has remained strong in 2011 with prices setting seasonal records. There is firm underlying demand in most salmon markets, both established and new, despite the high prices and a scarcity in supply. The demand for salmon is driven by changes in eating habits toward new eating trends, such as sushi and a stronger focus on a healthy diet. Better distribution and market penetration in new and populous markets is another driving force, which is expected to have great potential in the future.”
