Morpol ASA on Wednesday reported its second-quarter results, including an increase in processing revenues to EUR 89.4 million, up from EUR 83.4 million during the second quarter of 2010.
Revenues from the company’s farming operations, which it did not own in the corresponding quarter in 2010, totaled EUR 34.6 million. EBIT was also up significantly from last year, to EUR 11.7 million, from a loss of EUR 2.1 million during the same period last year.
Sales volumes declined 11 percent in the second quarter compared to last year, but price increases have been passed on to customers at various times in the last 12 months, raising the average unit selling price.
“Even though salmon raw material prices are dropping, they still remained high on average in the quarter. We had a strong result from the farming operations and expect that the second quarter will be a turning point in the results of processing,” said Jerzy Malek, CEO. “The lower salmon prices are expected to increase processing margins for the rest of the year. Despite a reduction in demand and lower volumes, we expect sales to pick up as retail prices decrease.”
