Santiago, Chile-based fishing and salmon-farming firm Blumar saw net profits of USD 19.9 million (EUR 18.1 million) in the fourth quarter of 2021, versus a net loss of USD 7.3 million (EUR 6.6 million) during the same quarter of 2020.
The company's top-line revenue jumped 31 percent year-over-year to USD 137 million (EUR 125 million) in the quarter. Before fair-value adjustments, its EBITDA reached USD 19.8 million (EUR 18 million) during the quarter, versus a loss of USD 19.8 million (EUR 18 million) in Q4 of 2020.
The company credited the improvement to increased revenues in its fishing segment due to higher sales of frozen horse mackerel, as well as the recovery of international prices for salmon in its primary markets.
Regarding the latter, Blumar was able to recover prices from the three-year low in Q4 2020 of USD 3.50 (EUR 3.20) per kilogram of Atlantic salmon whole-fish equivalent (WFE), to a three-year high of USD 6.40 (EUR 5.80) per kilogram WFE in Q4 2021. Cost of sales increased from USD 4.90 (EUR 4.50) per kilogram WFE to USD 5.70 (EUR 5.20) in the same comparable periods.
During the quarter, its farmed salmon volume produced fell 20 percent year-over-year to 15,717 metric tons (MT), down from from 19,657 MT in Q4 2020. Thanks to strong prices, though, Blumar saw sales increase 40 percent to USD 97.7 million (EUR 89 million) from USD 69.5 million (EUR 63.3 million).
For the full-year 2021, the company posted sales of USD 626 million (EUR 570 million), a 35 percent jump from 2020. Revenues were broken down by Atlantic salmon, which weighed in at 61 percent of total sales (versus 54 percent in 2020); fishmeal and fish oil at 16 percent (versus 21 percent); frozen horse mackerel at 13 percent (compared to 12 percent); white fish at 8 percent (versus 9 percent), coho salmon at 1 percent (unchanged), and “others” at 1 percent (unchanged).
The U.S. represented Blumar’s most-important market by far, with 53 percent of product heading to that market, versus 45 percent in 2020; followed by Latin America at 15 percent, versus 13 percent in 2020; Asia at 13 percent, versus 16 percent; domestic sales at 11 percent, versus 19 percent; and Europe sales at 8 percent, compared to 7 percent.
At the beginning of the year, Blumar subsidiary Salmones Blumar said that an algae bloom event, which affected five farming grow-out centers in southern Chile’s Aysén region, brought mortality at its own operations of some 760,000 fish, equivalent to approximately 1,230 MT of biomass, with an estimated direct financial loss of USD 3.3 million (EUR 2.9 million). However, it said it estimated the event would not have significant negative financial consequences for the company or its subsidiary Salmones Blumar as its insurance policies would cover this type of event.
Photo courtesy of Blumar
