Strong earnings generate record profits for Leroy

By

SeafoodSource staff

Published on
February 25, 2014
For the fourth quarter of 2013, Lerøy Seafood Group reported its highest turnover in the company's history — a total of NOK 3.23 billion (USD 535 million, EUR 389 million), up from NOK 2.41 billion (USD 399 million, EUR 290 million) in the same period last year. In the quarter, the group also achieved an operating profit before value adjustment of NOK 425 million (USD 70 million, EUR 51 million) compared with NOK 136 million (USD 22.5 million, EUR 16.4 million) during the same time period in 2012.

The increase in turnover and operating profit is mainly attributed to higher prices for salmon and trout. Lerøy’s harvest volumes in the quarter 2013 are in line with the fourth quarter of 2012.

Costs related to Amoebic Gill Disease (AGD) were higher than expected in the quarter. Lerøy has now established the necessary level of alertness in order to treat AGD, but must acknowledge an unnecessarily negative impact on results generated by operations in Hordaland due to AGD in the quarter.

For the first time in Lerøy’s history, revenue surpassed NOK 10 billion (USD 1.7 billion, EUR 1.2 billion). Lerøy reported total turnover of NOK 10.8 billion (USD 1.8 billion, EUR 1.3 billion) in 2013, up from NOK 9.1 billion (USD 1.5 billion, EUR 1.1 billion) in the same period last year. The price increase for Atlantic salmon and trout experienced in the period has been substantial and that, combined with increased activity downstream within the company, has generated an increase in total sales income despite the 6 percent fall in harvested volume when compared with the same period last year. The company achieved a record-high operating profit before value adjustment of biomass in 2013 of NOK 1.63 billion (USD 270 million, EUR 196.5 million) compared with NOK 450 million (USD 74.5 million, EUR 54 million) in 2012. The improvement in profit is attributed to higher price realization

The company reported an operating profit after fair value adjusted biomass of NOK 2.39 billion (USD 396 million, EUR 288 million) in 2013, compared with NOK 745 million (USD 123.5 million, EUR 89.8 million) in 2012. Fair value adjustment of biomass in accordance with IFRS is NOK 764 million (USD 127 million, EUR 92 million) in 2013, compared with NOK 295 million (USD 49 million, EUR 36 million) in 2012.

Lerøy’s profit before tax and before fair value adjustment of biomass was NOK 1.63 billion (USD 270 million, EUR 196.5 million) in 2013, compared with a corresponding figure of NOK 380 million (USD 63 million, EUR 45.8 million) in 2012.

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