Despite lower sales for the year, thanks to “favorable market returns,” Tasmania-based salmon producer Tassal Group saw its 2014 net profit increase 14.7 percent to AUD 30.52 million (USD 4.9 million, EUR 3.7 million) compared to 2013.
EBITDA increased 13.9 percent to AUD 78.60 million (USD 12.7 million, EUR 9.6 million). However, revenue was down slightly to AUD 266.33 million (USD 43.1 million, EUR 32.5 million) on the back of restricted supply due to weather conditions.
“The FY14 result was a clear reflection of the continued success of the company’s long-term strategy to deliver shareholder value via its focused domestic market strategy,” said Mark Ryan, Tassal MD and CEO.
“Tassal has again produced double digit profit growth, further strengthening the company’s operating cash flow and balance sheet. Tassal’s sales initiatives and operating efficiencies continue to drive sustainable earnings growth and the generation of more dollars per kilo from domestic market sales. Importantly, this was against the backdrop of reduced fish supply as we dealt with the tail end of the hot summer 2012/13.
“From an operating perspective, although Tassal sold less fish over FY14, favorable market returns were achieved, together with improved operational efficiencies that reduced the cost of brining fish to market.
“Operational efficiencies have been generated through the implementation of world class infrastructure, improved breeding programs, improved logistics and packaging and feed conversion ratios. In addition, Tassal’s marketing campaign has been instrumental in building brand awareness and driving sales via increased domestic consumption per capita.
“Our domestic market strategy has been the right strategy for the company. It has delivered improved profitability and returns, and is leading us towards the goal of generating more acceptable return levels from the business.”
