Morpol expects demand to remain buoyant for its main products and for salmon (Photo: Morpol)

Morpol ASA : Strong Sales Growth Continues

Morpol ASA (Public, OSE: MORPOL), a world leading processor of salmon, has released its financial results for Q3 2012.

Morpol's consolidated operating revenue in Q3 2012 amounted to EUR 107.5 million, which was higher by EUR 4.1 million in comparison to operating revenue generated in the same period last year.

Operating EBIT for the quarter amounted to EUR 4.6 million (4.3 percent margin), which was EUR 11.5 million lower versus the same period last year.

The group's net interest bearing debt (NIBD) was EUR 146.8 million at the end of Q3 2012, EUR 25.9 million decrease compared to year end and EUR 6.6 million decrease compared to the end of Q3 2011. The equity ratio was 41.6 percent at quarter end compared to 44.1 percent at the quarter end prior year.

Morpol achieves strong sales in Q3 2012

Processing

Operating revenue in processing in Q3 2012 was EUR 91.2 million compared to EUR 83.9 million prior year.

Sales volume increased in Q3 2012 by 25.8 percent overall compared to the same quarter in 2011. There was a strong, double digit sales volume growth in all product categories. However, as retailers continued to put pressure on prices, Morpol achieved lower prices for its main products compared to the same period last year and the previous quarter.

From its ultra-modern processing plant, Morpol supplies major retailers and food service companies with a continuously evolving range of branded and private label products

Operating EBIT for processing in Q3 2012 was EUR 5.7 million vs. EUR 14.0 million in the previous year and remained on the same level compared to Q2 2012. The operating EBIT margin in Q3 2012 decreased to 6.3 percent compared to 16.7 percent prior year.

Raw material prices Q3 2012 were at similar levels to Q3 2011 but end sales prices have reduced significantly. Raw material purchase unit prices slightly decreased in Q3 2012 with an average NOS price from Norway of approximately NOK 25/kg, down by approximately NOK 2/kg from Q2 2012.

Salmon farming

Revenue in salmon farming in Q3 2012 was EUR 28.6 million (EUR 29.0 million in same period last year). Of the total revenue, EUR 12.1 million was transferred internally for further processing and sales.

Morpol products are prepared using equipment optimised to create cold and hot smoked salmon from top quality Atlantic salmon farmed in Norway and Scotland, organic Atlantic from Ireland and wild sockeye salmon, MSC certified from the Pacific coast of Alaska

Volumes sold were higher by 4.8 percent in comparison to the same period last year. However, revenue remained at the same level mainly due to a higher proportion of harvesting in Norway (salmon prices are generally lower in Norway versus Scotland).

Salmon farming operating EBIT in Q3 2012 was EUR 0.5 million (EUR 3.4 million same period last year), resulting in an operating EBIT margin of 1.7 percent (Q3 2011: 11.6 percent).

The drop in operating EBIT was mainly due to additional costs related to challenges with Amoebic Gill Disease in the UK.

CEO Jerzy Malek

The farming operation in the UK - Meridian Salmon Group - generated an operating EBIT of EUR 0.4 million. Sales volume in the quarter was 5,459 metric tonnes gutted fish equivalent returning an EBIT/kg of EUR 0.1/kg.

The Norwegian farming operation -Jøkelfjord Laks - generated an operating EBIT of EUR 0.1 million, returning an EBIT/kg of EUR 0.1.

"Morpol's growth continues", CEO Jerzy Malek says. "We expect demand to remain buoyant for our main products and for salmon as a whole, and as such will continue to pursue a strategy of profitable growth."

About Morpol ASA

Morpol ASA is a Norway-based company involved in the processing of salmon. It is involved in purchasing, processing, packaging, sales and distribution of smoked, marinated, fresh and frozen salmon and other fish products.

The Company specializes in smoked salmon and marinated salmon. Its product range mainly comprises cold and hot smoked salmon from Atlantic salmon farmed in Norway and Scotland, organic Atlantic salmon from Ireland, and wild sockeye salmon, Marine Stewardship Council (MSC)-certified, from the Pacific coast of Alaska. Morpol offers branded and private label seafood products for retail, as well as fresh or frozen products for food service.

The company is present in Europe, the United States and Asia. It holds a 99.94 percent stake in a Polish joint stock company Morpol SA, which further owns eight subsidiaries.

Source: Morpol ASA

Margaret E.L. Stacey
Editor Companies and Products
editorial@seafood.media
www.seafood.media

Address:	Tjuvholmen Alle 3
City:	Oslo
State/ZIP:	(0252)
Country:	Norway
Phone:	+47 90 24 73 83
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