Puerto Montt, Chile-based salmon-farming firm Multi X saw its financial performance dip in the second quarter of 2024 as lower harvests and sales took a toll on revenues.
Multi X’s revenues were down 16 percent in Q2 2024 to USD 175 million (EUR 158 million) from USD 207 million (EUR 187 million) in the same quarter of 2023. The firm’s EBITDA fell 31 percent year over year to USD 15.6 million (EUR 14.1 million), while net losses including fair value expanded to USD 11.6 million (EUR 10.5 million) from losses of USD 521,000 (EUR 472,000) in the Q2 2023.
Multi X harvested 22,709 metric tons (MT) whole-fish equivalent (WFE) in the second quarter of 2024, compared to 28,961 MT WFE in the same quarter one year ago, as the company said it had to postpone some harvesting due to growth challenges. Meanwhile, sales by volume fell 16 percent to 22,134 MT WFE from 26,302 MT WFE in Q2 of 2023. Multi X said it had been able to recover harvest weights tward the end of the quarter, with fish weighing an average 5.22 kilograms in the Q2 2024 compared to 4.61 kilograms in the same quarter of 2023.
Multi X also said that it was able to lower ex-farm costs to USD 5.00 (EUR 4.53) per kilogram WFE after more than 10 consecutive quarters of increasing costs. It predicted that costs would continue to fall due to lower feed prices, recovery of harvest weights, and savings from its “Humboldt Project,” which seeks to realize efficiencies and savings throughout the company’s value chain.
Multi X is currently implementing the initiative and expects savings of USD 49.5 million (EUR 44.8 million) over 12 months, resulting in a USD 0.40 (EUR 0.36) boost in EBIT per kilogram of salmon, the company said.
In terms of product distribution during the quarter, Multi X said it sold 10,459 MT WFE of fillets, representing 47 percent of total sales; followed by 8,451 MT WFE of head-on, gutted (HON) fish, comprising 38 percent of the total; and 3,558 MT WFE of custom-processed fish, amounting to 16 percent of total sales. During the quarter, 97.5 percent of its product was considered premium, it said.
In July, Chile’s Superintendency of the Environment (SMA) filed charges against Multi X for overproduction during five consecutive production cycles from 2014 to 2021 at its Cholga production center, located in the Las Guaitecas National Reserve in the southern Aysén region of Chile. The infringement was classified as extremely serious because it was a repeat offense that caused environmental damage in a protected wildlife area, SMA said. Multi X faces fines up to CLP 7.89 billion (USD 8.3 million, EUR 7.7 million), the revocation of environmental licenses, and potential operational closure of the farms in question.
