For the second quarter of 2013, Leroy Seafood Group reported its second-highest revenue in its history, a total of NOK 2.5 billion (USD 410.6 million, EUR 308.5 million) , up from NOK 2.3 billion (USD 377.7 million, EUR 283.8 million) in the same period last year.
The group also achieved its second highest operating profit in its history of NOK 462 million (USD 75.9 million, EUR 57 million) compared to NOK 138 million (USD 22.7 million, EUR 17 million) in the second quarter of 2012. The increase is mainly attributed to higher prices for salmon and trout. Harvest volumes from the quarter however, were 12 percent lower at 33,700 metric tons (MT), compared to 38,400 MT.
Prices for the company’s salmon and trout in the quarter were significantly higher than the second quarter of 2012.
In the first half of the year, revenue was also up to NOK 4.8 billion (USD 788.1 million, EUR 592 million), compared to NOK 4.5 billion (USD 738.8 million, EUR 555 million) in the first half of last year. Profit was also up significantly to NOK 832 million (USD 136.6 million, EUR 102.6 million) from NOK 241 million (USD 39.5 million, EUR 29.7 million) in the first half of 2012.
The improvement in profit is attributed not only to the strong price increase but also to lower production costs. The decline in production volume is attributed to lower sea temperatures, but also the fact that the group has to slaughter a large number of fish due to the stamping out regime related to infection by pancreas disease in central Norway last year.
Leroy estimates a harvest volume of 150,000 MT, lower than the previous estimate of 154 MT.
The company said it expects prices for Atlantic salmon and trout to remain volatile and predicts lower prices in the second half of the year, due to lower-than-expected sea temperatures along the Norwegian coastline.
The board of directors anticipates a weaker result in the third quarter than in the second quarter of 2013, but a significantly stronger result in the second half of 2013 than was achieved in the second half of 2012.
