Puerto Montt, Chile-based salmon farmer Multiexport Foods saw first quarter net profits drop 94 percent to USD 1.4 million (EUR 1.26 million) when compared to Q1 of 2019, even though operating income increased 12.8 percent to USD 154 million (EUR 138 million), according to information Multiexport reported to CMF, Chile’s financial markets regulator.
Sales volume reached 25,516 metric tons (MT) whole fish equivalent (WFE) – 27.1 percent higher than that reported in the first quarter of 2019, which the company credited to organic growth and a postponed harvest from 4Q 2019 due to what it called “logistical difficulties” brought about by social unrest, particularly on the island of Chiloé. However, sales prices plunging an average 11.2 percent offset the gain.
Harvest weights remained relatively stable, averaging 5.26 kilograms WFE for Atlantic salmon in the quarter, compared to 5.31 kilograms WFE in the same period of 2019.
Earnings before interest and taxes (EBIT) reached USD 10.1 million (EUR 9.1 million), falling from the USD 27.1 million (EUR 24.3 million) registered in the same period of the previous year, explained in large part by the drop in sales prices and a slight increase in ex-farm costs. Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 50.9 percent year-over-year to USD 15.6 million (EUR 14 million).
Fair value adjustment took its final toll on the bottom line, hitting Multiexport with a loss of USD 5.4 million (EUR 4.8 million), versus a USD 6.7 million (EUR 6 million) gain at the end of the first quarter of 2019.
At the unit EBIT level, Atlantic salmon reached 0.42 USD (EUR 0.38) per kilogram WFE, lower by USD 0.92 (EUR 0.83) compared to the first quarter of 2019. The unit EBIT for coho salmon – of which Multiexport sold just 1.3 MT during Q1 – was a loss of USD 0.24 (EUR 0.22) per kilogram WFE, lower by USD 1.23 (EUR 1.11) per kilogram WFE compared to the same period of the previous year.
At the beginning of the year, Multiexport announced it had signed a seven-year, USD 250 million (EUR 225 million) credit with a consortium of three banks in order to pay off other loans and finance its long-term strategic development plan.
Founded in 1987, Multiexport Foods has more than 2,400 employees, with productive activities in southern Chile’s Regions IX, X, XI, and XII. It is present throughout the salmon production chain, from reproduction to distribution to the final customer in more than 30 countries.
