Morpol’s 2Q profits slump
Morpol announced a EUR 700,000 drop in operating revenues for the second quarter of 2012 to EUR 113 million, compared to the same time period in 2011. In addition, EBIT dropped EUR 2.4 million to EUR 6.2 million in the quarter compared to last year.
The Polish salmon processor’s sales volumes increased by 20 percent compared to the same quarter in 2011, credited to a different product mix positively impacting the average sales price. Sales of the company’s principle product, cold smoked salmon, dropped by 1.6 percent in volume but sales of specialty products grew 37.1 percent in volume, other products by 35.9 percent and byproducts by 30.9 percent.
Cold smoked salmon sales lagged due to the company’s decision during the first quarter of 2012 to resist reducing sales prices entering the second quarter as it expects higher raw material prices going forward.
Revenue for salmon farming in the quarter was EUR 37.1 million, up from EUR 34.6 million in the same period last year. The 27 percent drop in market prices for salmon was compensated by a 24 percent increase in volumes sold.
“We are headed in the right direction,” said Jerzy Malek, CEO. “A demand surge for smoked salmon and Morpol’s strategy of diversifying our product portfolio will ensure continued growth for the company.”