Profand's 2023 earnings higher despite flat sales

Workers processing octopus inside a Profand processing facility
Spain-based Profand reported increased earnings despite flat revenue and lower sales volumes | Photo courtesy of Profand
4 Min

Vigo, Spain-based Profand Fishing Holding reported increased earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2023 on relatively flat sales.

The company reported an EBITDA of EUR 68 million (USD 72 million) for FY 2023, an increase of 14 percent compared to 2022. The increased EBITDA came despite a slight decrease in turnover, with the company pulling in EUR 930 million (USD 989 million) in 2023, down from EUR 932 million (USD 992 million) in 2022. That was achieved on 112,000 metric tons (MT) of fish sold, down slightly from the 120,000 MT it reportedly sold in 2022.

The better earnings despite lower turnover and sales was largely the result of the global stabilization of some of its operating expenses, the company said. The company highlighted lower freight and electricity costs as a reason for the 14 percent increase in EBITDA.

Profand, which as a privately held company is not required to report its annual results, said it made EUR 63.3 million (USD 67.4 million) in investments in 2023, “the culmination of a strong investment plan implemented over the past two years with the strategic objective of expanding and strengthening Profand’s industrial capacity and promoting the group’s vertical integration strategy, accompanying Mercadona in the development of its New Fish Model.”

Mercadona, a Spanish supermarket chain, sold seafood processor and distributor Caladero to Profand in 2019. Profand is now Mercadona’s main supplier of seafood, and Profand said a 14 percent increase in its production volume to 67 million trays was largely thanks to Mercadona’s “commitment to the New Fish sales model.”

Profand also said the investments included its purchase of a processing facility in Boston, Massachusetts, U.S.A. In June, Stavis Seafoods – which Profand Group acquired in 2018 – announced it would be moving to a new facility in the Boston Seaport formerly owned by Legal Seafood.

The company also invested in a Pacific white shrimp aquaculture facility in Ecuador, it said.

Profand recorded an increase in gross operating profit, but adjusted attributable profit for the year decreased due to the cost of higher interest rates. The company said its adjusted attributable profit stood at EUR 12.3 million (USD 13.1 million) at the end of 2023, down from EUR 15.6 million (USD 16.6 million) in 2022. 

The company said it improved its sustainability performance in 2023, reducing the energy it consumes per metric ton of product by 16 percent. It also increased the use of recycled plastics to 41.6 percent.

“Profand uses high-pressure processing (HPP) technology in its plants, which allows the company to extend the shelf life of its products without using additives while retaining all their nutritional properties. This results in a significant reduction in food waste and therefore CO2 emissions,” the company said. 

Profand said its employee base expanded to 3,497 employees in 2023, an increase of 267 employees over 2022.  

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