Los Ángeles, Bio Bio, Chile-based Salmones Austral narrowed its net losses during the first half of 2021, as its shipments surged to 30,469 metric tons (MT), up 50.7 percent from the 20,219 MT shipped in the first six months of 2020.
Salmones Austral's revenues came to USD 139 million (EUR 118 million) between January and June, up 41 percent compared to the USD 98.8 million (EUR 83.6 million) registered in H1 2020. The higher revenue came despite a 5 percent drop in the company's average sales price to USD 4.52 (EUR 3.83) per kilogram of whole fish equivalent (WFE), according to a company financial report.
However, its cost of sales also increased 46.5 percent year-over-year to USD 137 million (EUR 116 million), which Salmones Austral attributed to its higher volumes sold. During the first half of the year, earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 61.5 percent to USD 2 million (EUR 1.7 million). The company posted a net loss of USD 1.7 million (EUR 1.4 million), compared to USD 12.6 million (EUR 10.7 million) in losses posted in the first half of 2020.
"Despite the contingencies experienced during the pandemic, our centers and plants continued to operate during the first half of 2021, which speaks highly of our team and our protocols," Salmones Austral Vice President Christian Samsing said. "The business has benefited from the rise in international salmon prices, which have been driven by the reopening of the HoReCa [hotel, restaurant, and casino] markets, particularly in the United States."
Samsing said Salmones Austral expected its overseas markets to continue to recover from COVID-19, which he said bodes well for the company during the second half of the year.
Salmones Austral previously reported its shipments surged 88.9 percent to 19,500 MT during the first quarter of 2021, thanks to stronger coho salmon sales recorded in the last three months of 2020, driving a 66 percent increase compared to total volumes sold in Q1 2020. However, lower sales prices and higher costs led the company to losses of USD 9.4 million (EUR 7.7 million), versus a net profit of USD 5.9 million (EUR 4.8 million) in Q1 2020.
Salmones Austral was created in 2013 through the merger of Trusal and Pacific Star. Today, it has annual production of some 45,000 MT to 55,000 MT, exported to more than 20 countries, with more than 1,400 workers operating in two processing plants and 20 fresh-water and sea-water farming centers in the regions of Maule, Biobío, La Araucanía, Los Lagos, and Aysén. Of its annual production, 63 percent is Atlantic salmon, and the remaining 37 percent is coho salmon.
The United States and Asia are the main markets for its Atlantic salmon, while Japan is the primary destination for coho.
Photo courtesy of Salmones Austral
