The Scottish Salmon Company PLC Operational Update Q4 2018
March 01 2019 - 12:00AM
Strong
operational development and record results
Highlights
-
Fourth quarter revenue up 6% and EBIT/Kg up 20%
year-on-year driven by higher harvest volume and strong
prices
-
Harvest of 7,045 tonnes in the quarter, total
harvest for 2018 of 29,913 tonnes
-
Record full year revenue and EBITDA
-
Acquisition of Harris & Lewis Smokehouse in
the Isle of Lewis
-
Dividend declared of 0.57 NOK/share
-
2019 annual harvest target of 31,500
tonnes
Key financials
|
Q4 2018 |
Q4 2017 |
FY 2018 |
FY 2017 |
Net
operating revenues |
42,488 |
39,895 |
180,125 |
150,946 |
EBITDA |
9,976 |
8,650 |
56,302 |
38,669 |
EBIT
before fair value adjustments |
8,019 |
6,542 |
48,014 |
30,476 |
Equity
ratio |
63% |
59% |
63% |
59% |
NIBD |
35,787 |
38,519 |
35,787 |
38,519 |
Harvested volume |
7,045 |
6,874 |
29,913 |
25,272 |
EBIT/kg before fair value adjustments |
1.14 |
0.95 |
1.61 |
1.21 |
Status and outlook
-
Revenue for the fourth quarter 2018 was £42.5
million (Q4 2017: £39.9 million). Harvest volumes increased 2.5% to
7,045 tonnes (Q4 2017: 6,874 tonnes). Revenue per kilo also
increased to £6.03/kg in the quarter (Q4 2017: £5.80/kg), driven by
overall continued strong prices.
-
Costs/kg was £4.61 for the quarter (Q4 2017:
£4.55/kg). From Q1 2018, The Scottish Salmon Company (SSC) changed
its accounting practice for mortalities to be in line with industry
standards. This has resulted in a positive accounting effect
in 2018, lowering harvest costs by £0.32/kg year to date and
£0.27/kg in Q4 2018. However, total Q4 costs were relatively higher
as processing capability was extended in the South region. Other
cost movements reflect the different profile of sites being
harvested.
-
The underlying demand for Scottish salmon
remains strong. Export volumes accounted for 61% of sales during
the period, up from 58% in Q4 2017. SSC continues to develop
overseas markets, particularly in North America and the Far East,
exports for 2018 were 58%.
-
Total harvest volume in 2018 was 29,913 tonnes,
slightly above the revised target of 29,500 tonnes.
-
Total capital expenditure was £20.5 million in
2018 consisting of infrastructure investment in the new marine
sites of Maaey and Portree as well as freshwater facilities and
ongoing site improvement projects.
-
In December SSC acquired the Harris & Lewis
Smokehouse in the Isle of Lewis, this strategic investment
underpins the focus on brand development in key international
markets, with Scottish Provenance Guaranteed.
-
Estimated harvest volume for 2019 is 31,500
tonnes and 7% cycle on cycle growth is forecast.
CEO comment
Craig Anderson, Chief Executive Officer at The
Scottish Salmon Company, said:
"In the fourth quarter, we delivered record
results driven by strong operational performance across the value
chain, good biological performance and a positive market
environment.
"Throughout 2018 we focussed on driving export
growth. Our commitment to Scottish Provenance and quality are key
differentiators in the international market place. Our brands,
underpinned by this unique Scottish Provenance, have contributed to
our export achievements over the past 12 months. Lochlander Salmon
was successfully introduced into North America and Tartan Salmon
Label Rouge launched in France, growing our market share in these
territories. Developing our presence in North America and the Far
East remain our focus. While, like any business, we have been
monitoring Brexit negotiations closely, we have a global
perspective and robust long-term strategy in place to support
growth.
"We made several investments to improve
productivity and efficiency throughout our value chain during 2018.
These included; freshwater developments, the Native Hebridean
Family Breeding Unit, strategic site development as well as further
increasing our processing capabilities.
"Supporting this strategy is the recent
acquisition of the Harris & Lewis Smokehouse on the Isle of
Lewis. Reinforcing our commitment to rural Scotland, it will
exclusively smoke Native Hebridean salmon and represents a
milestone in the development of this salmon. It complements
the introduction of fresh Native Hebridean salmon into a major UK
retailer earlier this year.
"In 2019, we remain firmly
focused on our strategic priorities, ensuring the responsible
growth of the Company as we bring the finest quality Scottish
salmon to customers worldwide"
Results
presentation
CEO Craig Anderson and CFO Fiona Larkin will present the Q4 and
full year 2018 results at 09.00 CET on 12 March 2019 at Hotel
Continental, 2019 Stortingsgata 24/26, Oslo, Norway.
For more information, please
contact:
Su Cox, Investor Relations, su.cox@scottishsalmon.je
About The Scottish Salmon
Company
The Scottish Salmon Company is the leading producer of quality
Scottish Salmon with all operations in Scotland. The Company is
engaged in all stages of the value chain from smolt production
through freshwater and marine farming to harvesting and processing,
as well as sales and marketing activity. It is dedicated to
producing the highest quality Scottish salmon.
All of The Scottish Salmon Company's farms and processing
facilities are audited and approved by the internationally
acclaimed BAP accreditation scheme, which includes excellence in
fish husbandry and animal welfare.
Over 550 people are employed by
the Company, approximately 250 of whom are in the Hebrides, with
its head office in Edinburgh.
The Scottish Salmon Company
Limited is a subsidiary of The Scottish Salmon Company PLC, which
is listed on the Oslo Stock Exchange.
For more information, visit:
www.scottishsalmon.com
This information is subject
to the disclosure requirements pursuant to section 5 -12 of the
Norwegian Securities Trading Act.
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: The Scottish Salmon Company via Globenewswire
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