Tassal Group Ltd. achieved net profit after tax of AUD 50 million (EUR 32.4 million; USD 36.5 million) for the full year ending 30 June 2015, an increase of 21.8 percent on the previous 12 months. For the same period, the Australian salmon producer delivered an operating net profit after tax of AUD 35 million (EUR 22.6 million; USD 25.6 million), up 14.8 percent.
Revenue was up 16.3 percent to AUD 309.8 million (EUR 200.4 million; USD 226.4 million) as Tassal benefited from increasing per capita consumption and strong growth in domestic wholesale market sales, which increased 33.6 percent. The domestic retail market revenue grew 7.7 percent and accounted for 71 percent of volume and 73 percent of revenue in the year.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 14.2 percent to AUD 72.6 million (EUR 47 million; USD 53.1 million), reflecting operational efficiencies and sustainable contribution margins generated from domestic market sales.
“Tassal’s domestic market strategy continues to deliver long-term sustainable returns as salmon per capita consumption continues to grow. Our focus on ensuring more efficient operations underpinned our performance this year as we streamlined processes right across our supply value chain,” said Mark Ryan, managing director and CEO of Tassal.
“Pleasingly, the focus on operational performance right across our supply value chain, from growing and processing to logistics and distribution, not only enabled us to mitigate the negative impact of lower pricing in the wholesale and export market over FY 2015, it has also put the company in a strong position to continue to sustainably grow the business going forward,” he said.
Last month, Tassal acquired De Costi Seafoods, one of Australia’s leading seafood companies, in a cash and share deal. The move, said Ryan, “evolved our corporate growth strategy from salmon only to salmon and seafood,” and will “underpin further growth for the business from this year on.”
Following the acquisition of De Costi, Tassal’s total addressable market opportunity has grown from AUD 700 million (EUR 452.8 million; USD 511.6 million) to AUD 4.3 billion (EUR 2.8 billion; USD 3.1 million) annually.
“We are confident that Tassal has the right foundations in place in its existing business and within De Costi to successfully pursue the company’s next growth phase,” said Ryan.
“We are now looking to further optimize the entire salmon and seafood value chain, driving further economies of scale from a cost perspective and maximizing domestic consumption in seafood. The De Costi acquisition will be pivotal in delivering efficiencies across the salmon and seafood supply chain for Tassal.”
