Higher volume, lower profit for Scottish Salmon
Profits for the third quarter for the Scottish Salmon Co. are down this year compared to 2011, but the company showed an increase in net operating revenue and harvested volumes.
The company’s Q3 report shows revenues of GBP 21.5 million (USD 34.5 million, EUR 26.6 million), which is up from the GBP 17.8 million (USD 28.5 million, EUR 22 million) recorded in Q3 2011.
The revenues came from increased sales volume, with a harvest of 6,607 metric tons (MT) compared to 4,686 MT recorded last year.
Earnings, however, were in the black, but down compared to last year. The Q3 results showed GBP 130,000 (USD 208,494, EUR 160,714), compared to the GBP 690,000 (USD 1.1 million, EUR 853,049) recorded in Q3 2011. The report blamed the loss on “costs associated with biological issues, which affected the Scottish industry as a whole, and the weaker spot price of salmon and is expected to continue into Q4.”
Despite the difficulties, CEO Stewart McLelland noted that the company remains optimistic it will have higher sales volume in 2014, in part due to a new license granted in Mull, which will allow delivery of up to 2,500 MT in new volume.
"The Q3 results mirror wider industry trends and reflect the innate, natural challenges faced by the industry as a whole,” McLelland said. “Having said that, The Scottish Salmon Company has remained resolute in dealing with these challenges. We have maintained our focus on the long term, keeping the company on course to increase volumes of premium salmon to 29,000 MT in 2014.”