Santiago, Chile-based salmon farming and fishing company Camanchaca harvested 20,288 metric tons (MT) of Atlantic salmon during the fourth quarter of 2019, jumping 45.5 percent from the same period one year prior, and marking the quarter as its largest-ever harvest, according to an earnings release posted by the company.
For the full year 2019, the company harvested 57,700 MT of Atlantic salmon and 4,300 MT of coho salmon. It had previously established guidance of 55,000 to 56,000 MT of Atlantic salmon and 4,500 MT of coho for the year. The fourth-quarter harvest represented 38 percent of the full year.
The record salmon harvest boosted Camanchaca’s revenues to USD 201 million (EUR 181 million) in the fourth quarter, rising 36.2 percent from the fourth quarter of 2018. EBITDA increased 29.1 percent year-over-year to USD 36.1 million (EUR 32.6 million).
However, during the quarter the company took a USD 9.4 million (EUR 8.5 million) hit in fair value, versus a USD 2.7 million (EUR 2.4 million) boost in the same period in 2018, which dragged on the company’s bottom line. Net profits for the quarter were USD 3.5 million (EUR 3.1 million), dropping 61.4 percent from the same period in 2018.
Average sales price for salmon during the quarter reached USD 6.02 (EUR 5.43) per kilogram whole fish equivalent (WFE), down 4.4 percent from the same quarter of 2018.
Camanchaca brought in USD 156 million (EUR 141 million) in salmon sales in Q4, versus USD 109 million (EUR 98.4 million) in the same period of 2018, while its fishing activities saw USD 41.0 million (EUR 37.0 million) in sales, compared to USD 33.0 million (EUR 29.8 million).
For the full year, the percentage of total revenues coming from the North American market rose from 44.8 percent to 48 percent, while Europe and Eurasia (mainly Russia) fell from 22.5 percent to 14.3 percent, which Camanchaca attributed to “a decrease in the attractiveness of the Russian market during the first half of the year. The latter is a market that shows greater volatility in terms of access,” and as such the company foresees an allocation of no more than 10 percent to the area in its medium- and long-term outlook.
Meanwhile in Asia – excluding Japan (mainly China) – revenues fell from 6.5 percent to 5.7 percent, while in Japan it increased from 3.8 percent to 8.7 percent. Sales in Latin America, excluding Chile, fell from 17.1 percent to 16.0 percent due to lower volumes sent to Brazil, offset by an increase in the Mexican market.
“In summary, the less-attractive conditions in Russia and Brazil meant that product was moved from there to the traditional markets of the U.S., Japan, and Mexico,” the company said.
Camanchaca is a vertically integrated production and distribution company, exporting its products to more than 50 countries through seven offices and commercial representations in the main markets. The company has some 3,500 employees.
