Smoked salmon processing. (Photo Credit: Morpol)

Morpol results show strong increase in Q3

Norwegian salmon farming company Morpol ASA has shown strong results in Q3 thanks to higher revenue from both processing and farming sectors.

The firm had an operating EBIT of EUR 10.4 million, which was EUR 5.8 million higher than the same period last year, and higher in EUR 12.4 million than the second quarter this year.

Processing operating revenue yielded EUR 116.0 million compared to EUR 91.2 million for the same period last year. Higher prices per unit had an impact on revenue. And the volume excluding contract processing increased in a significant way in comparison to the same period in 2012.

For this quarter, processing operating EBIT reached EUR 2.1 million compared to EUR 5.7 million for the same period last year. This reduction shows the fact that raw material prices went up significantly when compared to the same period last year, and that this increase was not followed by final sales prices.

Morpol expects a good demand level is kept for its main products until consumers' proces are adjusted to include the increase in raw material price.

On the other hand, as a consequence of smoked salmon price rise during the third quarter in all markets, the firm expects this can have a negative impact on its sales rise throughout the rest of the year.

With regards to salmon farming, operating revenue Q3 this year reached EUR 44.4 million compared to EUR 28.6 million in same period in 2012.

The biological yield in Norway is still good and the firm hopes this positive evolution continues.

In the United Kingdom, the yield was good and the biological situation matched the expected vision.

Sales volume was down by 23 per cent year-on-year and of the total revenue, EUR 19.9 million was destined for sale internally for further processing and sales.

For this quarter, operating EBIT reached EUR 8.7 million (compared to EUR 0.5 million for the same period in 2012), which meant an operating EBIT margin of 19.7 per cent compared to 1.7 per cent for Q2 in 2013.

The company expects salmon prices will be strong until the end of the year and in 2014.

 

By Gabriela Raffaele
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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