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Salmon packaging line. (Photo: AquaChile)
AquaChile sees its results rebound thanks to good prices and lower costs
CHILE
Tuesday, May 23, 2017, 00:10 (GMT + 9)
Empresas AquaChile reported that as of March 31, 2017, consolidated sales increased 24 per cent compared to the same period in 2016 while operating costs decreased 13 per cent.
As a result, operating income before fair value adjustments (EBIT pre adj. FV) reached USD 41.6 million, compared to USD -21.2 million in the same period of the previous year.
Pre-fair value EBITDA was USD 50.2 million, compared to a loss before interest, taxes and depreciation of USD 10.3 million in the first quarter of 2016.
The company attributes these good results to several factors, among which it quotes: the recognition of the adjustment for fish biomass recovery in upbringing USD +18.5 million (compared to USD 11.0 million in the same period of the previous year ), which in turn is mainly explained by higher market prices observed in salmon and trout; and the reverse of a provision due to a lower realization value of finished product as of March 31, 2017 of USD +0.4 million, lower than the provision of USD +5.3 million recorded as of March 31, 2016.
It also mentions the recognition of a higher cost due to fair value assessment of the biomass harvested and sold up to March 2017 of USD -29.1 million, lower than the USD +12.6 million registered in the same period of the previous year, mainly due to the positive difference between the prices at which the biological assets of Atlantic salmon and trout were valued during the first quarter of 2017 and the prices of both species during the first quarter of 2016.
Other Costs and Operating Expenses decreased by 17 per cent compared to the first three months of 2016.
Distribution costs, in particular, fell by 25.7 per cent, mainly due to lower storage, delivery and freezing costs associated with lower sales volumes; while administrative expenses presented a slight increase of 0.4 per cent, mainly associated with the incorporation of Salmones Chaicas.
As of March 31, 2017, the company reported a net income of USD 18.2 million, compared to a loss of USD 29.5 million in the same period last year.
Empresas AquaChile explains that this profit is mainly due to the decrease in sales cost in Pacific salmon and tilapia; and good sales price levels for the salmon and trout segment, which together increased by 52 per cent over the period as of March 31, 2016.
editorial@seafood.media
www.seafood.media
Photo Courtesy of FIS Member  AquaChile S.A. - Group Headquarters
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