Scottish Salmon Company farming centre. (Photo Credit: Scottish Salmon Company)
Scottish Salmon Company achieves strong performance in 'challenging' Q3
Thursday, November 27, 2014, 04:00 (GMT + 9)
The Scottish Salmon Company (SSC) has reported revenues of GBP 33.6 million (USD 52.7 million) for the third quarter this year, representing a rise of 82.6 per cent from the same period last year, when revenues reached GBP 18.4 million (USD 28.8 million).
There was also an increase in harvested volumes in this period, which were 8,800 tonnes from 4,500 tonnes in Q3 last year.
Besides, SSC achieved a 56.2 per cent increase in accumulated revenues for the first nine months of 2014, which were GBP 95.1 million (USD 149.2 million).
"We are enjoying a record year at the Scottish Salmon Company, and this is built on the quality of our product, our guarantee of its provenance and Scottish origins, and our commitment to the people and places where we work,” pointed out the Group’s managing director Craig Anderson.
The Group considers these excellent results have been achieved due to a sustained period of warmer water temperatures this year, which continued through August and September, contributing to strong biological growth.
However, the higher water temperatures have also resulted in higher mortalities and treatment costs, which combined with the remote locations of the sites harvested during the third quarter and the continuing fall of spot prices have contributed to an EBIT/kg of GBP 0.03 (USD 0.04) in the third quarter.
SSC pointed out that the trade sanctions imposed by Russia affected the market situation, since suppliers were forced to redirect their shipments and this, in turn, had an impact on the cash market.
"The industry as a whole has been facing biological issues such as higher mortality. We are addressing this through a variety of measures such as collaboration with other producers, strict protocols and training and monitoring. This has increased costs at a time when the high volume of product on the market has driven down traded prices,” Anderson explained.
The director is confident that SSC can address these issues and sustain their exceptional performance this year and into the future with continuous commitment to sustainability.
In its latest financial report, the Group highlighted it managed to extend its export markets to 21 countries, with regular sales in the Far East and the US, and forecast it expects to harvest a total of 30,000 tonnes this year.
Based in Scotland, SSC operates 60 sites including marine farms, freshwater hatcheries, harvesting and processing facilities and offices.