Los Ángeles, Bio Bio, Chile-based salmon farmer Salmones Austral saw net losses of USD 5.9 million (EUR 5.4 million) during the first quarter of the year, compared to profits of USD 11 million (EUR 10 million) in the same quarter of 2019, according to a company release.
The company actually increased sales in tonnage during the first quarter of 2020, reaching 10,300 metric tons (MT), up 2 percent, but a lower sale price of USD 5.23 (EUR 4.75) per kilo whole fish equivalent (WFE) for the first quarter of the year, compared to USD 5.68 (EUR 5.16) per kilo WFE seen in the same period last year, brought revenues down 4.2 percent to USD 56.9 million (EUR 51.7 million).
"Despite the impact of the coronavirus pandemic in key markets, we were able to diversify sales and increase the volume sold between January and March," Salmones Austral Vice President Christian Samsing said.
During the quarter, the cost of sales rose 5.5 percent to USD 45.9 million (EUR 41.7 million), while earnings before interest, taxes, debt, and amortization (EBITDA) fell 34.6 percent to USD 10.4 million (EUR 9.4 million).
Salmones Austral's profits before tax and fair value reached USD 7 million (EUR 6.36 million), compared to USD 11 million (EUR 10 million) in the first quarter of 2019. As a result of the low prices generated by the effects of the COVID-19 pandemic, the net fair value of biological assets dragged the company into the red.
Earlier this month, the company got approval from Chile’s financial market regulator, CMF, to register its shares in the securities register – the last regulatory step needed before listing on the stock exchange and launching an initial public offering. While Salmones Austral will hold off from listing until market conditions improve, the eventual proceeds will go towards funding its USD 100 million (EUR 90.8 million) 2020-2023 strategic investment plan.
Created in 2013 after the merger of Trusal and Pacific Star, Salmones Austral now has more than 1,400 workers operating in two processing plants and 20 production centers in the Maule, Biobío, La Araucanía, Los Lagos and Aysén regions. Its annual production fluctuates between 45,000 and 55,000 MT, with the potential capacity of reaching 80,000 MT. Of annual production, 63 percent is Atlantic salmon, and the remaining 37 percent is coho salmon.
Photo courtesy of nomading/Shutterstock
