Multiexport Foods and AquaChile became the first Chilean salmon farmers to report results for the first quarter of 2018. Both reported profits and felt the impact of lower prices for Atlantic salmon. However Multiexport saw its revenue fall and also ceded in profits, while AquaChile had a slight revenue dip and a profit increase compared 2017.
According to Multiexport’s investor presentation for the quarter, the firm recorded USD 121.8 million (EUR 103.3 million) in sales for the quarter, a four percent decrease to the same period last year. The firm said that lower sales prices were to blame, even though they were compensated by better costs and higher sales volumes.
Sales prices fell 17 percent compared to the first quarter of 2017, registering an average of USD 5.20 (EUR 4.41) per pound. Volumes for its Atlantic salmon saw the largest increase, with 18,820 metric tons produced, a 23 percent increase over the same period last year.
In profits, Multiexport posted a 63 percent drop, falling to USD 12.6 million (EUR 10.6 million).
In the case of AquaChile, the firm reported USD 184 million (EUR 156 million) in consolidated sales, a seven percent drop compared to the same period last year. The company said that its sales prices were lower in the first quarter of 2018, but through efficiency measures, it lowered operational costs by two percent.
This was reflected in a 37 percent increase in its earnings for the first quarter of this year, which reached USD 24.9 million (EUR 21.1 million). With these results, the company has closed seven consecutive quarters reporting profits.
“We have been focused on finding greater efficiencies, which will continue to be an important objective into the future, as there are still more opportunities to approve. The cost efforts have allowed us to mitigate the lower salmon prices observed in this latest quarter compared to the beginning of 2017, which is changing due to the solid demand fundamentals currently seen,” AquaChile General Manager Agustìn Ugalde said in a press release.
Multiexport’s investor presentation concurred, reporting that on 2 May, 2018, salmon prices reached a historic mark of USD 6.20 (EUR 5.26) per pound.
