Year of contrasts for Scottish Salmon Co.

This year was a year of contrasts for Scottish Salmon Co.

In the first half of 2011, the company had improved revenues and profitability. However, in the third and fourth quarters, lower volumes brought on by an imbalance in stocking cycles across the company’s sites had a negative impact on unit production.

Regardless, Scottish Salmon nearly matched 2010 in terms of turnover and met its volume targets, while profitability declined due to higher feed prices and lower salmon prices because of increased supplies worldwide.

The company’s net operating revenues dropped to GBP 90.2 million last year, compared to GBP 92.4 million in 2010. Overall sales volumes of 22,962 metric tons hit 2011 targets but fell slightly from 24,516 metric tons in 2010.

The company said it is optimistic, explaining that the challenges faced in the second half of 2011 are short term and that demand for its products remains strong.

“Our long term plans are to grow the business sustainably and we are investing locally to achieve the extra volumes needed to create the necessary synergies in the production process,” said Scottish Salmon CEO Stewart McLelland. “The demand for premium Scottish salmon globally remains strong and the long term outlook is extremely positive as we open up new markets. Short term price fluctuations impact financial performance but The Scottish Salmon Co. is well placed to withstand these pressures as we continue to innovate and build environmental excellence into all our operations.”

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