Norway Seafoods credits higher production volumes for the increase in sales for the first quarter of 2012.
The company’s sales reached NOK 648 million, up from NOK 595 million during the same period in 2011. Sales volume increased to 5,215 tons, up from 4,692 tons last year. Sales of fresh value-added products increased by 7 percent in the first quarter of 2012 compared to the same period last year.
The demand for salmon products increased as a result of lower prices. Salmon products accounted for 55 percent of the fresh value-added volumes in the quarter. Sales of frozen value-added products decreased by 15 percent in the quarter compared to the same period in 2011.
EBIT for the quarter was NOK 30 million, compared to NOK 2 million last year. The company also lowered its expenses to NOK 4 million, down from NOK 7 million in 2011.
“The market conditions for processed seafood are expected to remain challenging going forward with continued price pressure. The company continues to strengthen its sales and marketing organization and will launch new products to meet the market demands,” the company said in its quarterly report. “Access to raw material, in particular for processing of cod, will be difficult as the main season is finished and remaining quotas are limited. Availability for haddock is expected to be good, yet the company expects temporary lay-offs during the remainder of the year.”
Norway Seafoods spun off from Aker Seafoods in January of this year when the company came to an agreement with NB Bank and Nordea Bank Norge.
