Chilean salmon-farming firm Multi X’s consolidated losses in the first quarter of 2024 more than trebled year over year, with the company posting a net loss of USD 9.5 million (EUR 8.7 million) compared to a net loss of USD 2.7 million (EUR 2.5 million) in the same quarter of 2023, as lower market prices coupled with falling sales volume affected performance.
Multi X’s Q1 2024 operating revenues came in at USD 165 million (EUR 152 million), falling 19.3 percent when compared to top-line revenues of USD 205 million (EUR 188 million) in Q1 2023, the company reported in its first-quarter results.
Ex-farm costs climbed 16.1 percent to USD 5.14 (EUR 4.73) per kilogram of whole fish equivalent (WFE) during the quarter, compared to USD 4.43 (EUR 4.07) per kilogram WFE in the first three months of 2023. Multi X mainly attributed rise in costs to a lower average harvest weight, high fish feed prices, and inflationary pressures.
Processing costs also increased by USD 0.20 (EUR 0.18) per kilogram WFE due principally to a lower dilution of fixed costs from lower volumes processed.
The company’s Atlantic salmon harvest volume dropped 36.4 percent to 15,665 metric tons (MT) WFE in Q1, compared to 24,628 MT WFE harvested in the first quarter of 2023. Atlantic salmon sales volume was also down, falling 17.1 percent from 25,228 MT WFE in Q1 of 2023 to 20,921 MT WFE in the first quarter of this year. This was coupled with a lower average sales price, dropping from USD 6.81 (EUR 6.26) per pound in the first quarter of 2023 to USD 6.48 (EUR 5.96) per pound in the same quarter of 2024.
Sales were down in all of Multi X’s main markets.
Revenues coming from the U.S. fell 18.3 percent year over year to USD 108 million (EUR 99.3 million) from USD 132 million (EUR 121 million); sales in Brazil were down 30.3 percent, dropping to USD 13.4 million (EUR 12.3 million); Chile was down 36.6 percent, amounting to USD 8.1 million (EUR 7.4 million); China fell 62.8 percent to USD 1.2 million (EUR 1.1 million); Asia, excluding China, decreased 37.8 percent to USD 6.7 million (EUR 6.2 million); and Europe was down 22 percent to USD 3.7 million (EUR 3.4 million).
The firm’s EBIT for the first quarter of 2024 came in at a loss of USD 1 million (EUR 919,700), compared to positive EBIT of USD 26.2 million (EUR 24.1 million) in the same quarter of the previous year.
The company, formerly known as Multiexport, is the top producer of smoked salmon in Chile, the second-largest producer of Atlantic salmon in Chile, the country’s third-largest salmon producer overall, and is within the top six largest producers of Atlantic salmon worldwide.
