Scottish Salmon Co. reports record half-year results
Higher harvests and strong market prices have combined with a market-led strategy and good export sales to drive a record-breaking half-year for the Scottish Salmon Co. (SCC).
SSC reported a successful first half of 2014, with record revenue levels in both quarters. First quarter revenues were 48 percent more than the previous year, and this continued in the second quarter with revenue totaling GBP 33.8 million (USD 56.1 million, EUR 42.5 million), a 43 percent increase compared to the same quarter in 2013. Total revenue for the six months was GBP 61.5 million (USD 102 million, EUR 77 million).
The results reflect SSC's strong biological performance during the second quarter. Warm waters encouraged growth and increased harvest volumes — with 8,027 metric tons (MT) harvested in the quarter compared with 5,976 MT the previous year — and high market prices dominated the first six months of 2014. Costs per kilogram were also higher, solely due to the logistics of the locations being harvested. The company said its average costs continued to fall during the second quarter due to careful management, lower feed prices, good husbandry and vigilant health control.
The strong performance follows a change in focus over the past year, with Managing Director Craig Anderson moving the company from a production-led to a market-led strategy, and an emphasis on Scottish Salmon's provenance and premium quality. Export sales have continued to rise, accounting for 42 percent of revenue in the second quarter of 2014.
The company has committed to GBP 11 million (USD 18 million, EUR 13.8 million) of capital expenditure during 2014, and achieved additional consents at three sites, which will result in another 2,380 MT of product a year.
“In the first half of this year we have focused on market and client engagement and on understanding our customers' priorities and needs. Two consecutive quarters of record revenues and the continuing growth of our export sales show that this strategy is having tangible results,” Anderson said.
“Our continuing success and growing strength is based on the quality of our product and our guarantee of its provenance and Scottish origins. To further this, we’ve committed to significant capital expenditure over the rest of the year, including our Hebridean broodstock program in Uist.
“This investment also mirrors our commitment to the local communities in the areas where our operations are based. We support many events that are significant in the lives of our local communities, such as games and festivals, and we recently confirmed our sponsorship of Judo Scotland, the governing body of the Commonwealth Games medal-winning sport.”