Haikui Seafood products. (Photo Credit: Haikui)
Haikui Seafood's profits fell due to 'challenging conditions'
Monday, November 24, 2014, 03:10 (GMT + 9)
Seafood processing company Haikui Seafood registered revenue of EUR 87.4 million in the 2014 January-September results in comparison to EUR 100.3 million in the same period last year. The firm considered this 12.8 per cent decline was due to the keen competition and headwinds in the global economy.
“The difficult business landscape and keen competition resulted in fewer quantities of goods sold in the third quarter, causing our Q3 2014 revenue to decline by 6.4 per cent year-on-year,” pointed out the firm’s CEO Zhenkui CHEN.
Despite the challenging environment, the company expressed “cautious optimism” about its fourth quarter results, since it has succeeded in narrowing the gap in its year-to-date revenue decline to 12.8 per cent versus 15.7 per cent in half-year.
The firm’s main contributor was its frozen product segment with revenues of EUR 69.5 million in the first 9 months this year versus EUR 82.6 million in 2013, accounting for 79.5 per cent of total revenue.
The company revealed a slight growth in the canned product segment, which achieved revenues of EUR 17.9 million (EUR 17.7 million in 2013), mainly thanks to higher sales of canned abalone.
In the nine month period ended in September, lower revenue and higher production costs caused gross profit to drop by 26.3 per cent to EUR 13.8 million. Accordingly, EBIT went down by 31.7 per cent to EUR 10.0 million in comparison to EUR 14.6 million in the nine month period last year.
Despite all the difficulties, the firm announced it continues to pursue its long-term expansion plans, such as the construction of the new factory in Dongshan Island.
Haikui Seafood highlights the relocation agreement signed in October is a very positive development for Haikui Seafood as it not only allows the company to build a highly efficient seafood processing plant with modern and faster equipment at attractive terms but it also puts the company in an excellent position.
Haikui Seafood expects a strong business development in the fourth quarter of 2014 and maintains its guidance for the full-year 2014.
The firm’s products are made from a broad range of raw seafood, including prawn and crab and various types of fish and other species such as abalone, shellfish and cephalopod.