Morpol 4Q profit drops on high salmon prices
Polish processing and farming group Morpol posted a drop in its fourth quarter earning as it struggled with rises in salmon prices.
The company, recent acquired by Marine Harvest, posted EBIT of EUR 6.2 million (USD 8.3 million) for the quarter, down from EUR 9.5 million during the same quarter the previous year.
Sales were slightly higher compared to 2011, at EUR 163.1 million.
The processing division saw its operating EBIT drop to EUR 3.3 million in the fourth quarter in 2012, down from EUR 19.2 million from the same time period in 2011. The main reasons for the drop in the processing segment are the additional write-down of trade receivables and higher marketing expenses resulting from sales volume increase.
Salmon farming operations saw a sharp rise in operating revenues to EUR 41.2 million, up by EUR 4.5 million during the same quarter in 2011. Lower volumes were offset by higher sales prices.
The group had a net profit from continuing operations of EUR 5.9 million for the quarter, compared to a net loss of EUR 50 million in the fourth quarter of 2011.