The Scottish Salmon Company PLC Half Year Results 2017
August 30 2017 - 1:00AM
Strong market and improved operational performance drive
growth
- Record half year revenue of £72m driven by higher
prices and improved biological performance
- Cost per kilo impacted by prior year mortalities,
but positive development in underlying operations
- Exports for first six months exceed 50% of sales
with increased volumes to North America and the Far East
- The Hebridean Origin and Scottish Provenance
offerings well received in North America
- Consent for additional 2,000 tonnes at Portree
supports growth strategy
- Reiterate target of annual harvest volumes of
25,000 tonnes for 2017
The Scottish Salmon Company PLC has issued its H1
2017 results. Revenue grew 25% year on year providing the Company
with record half year results of £72.0m (H1 2016: £57.6m). Harvest
volumes were 11,617 tonnes (H1 2017: 13,123 tonnes). The lower
volume was due to bringing harvests forward in H2 2016, reducing
availability for 2017.
The strong performance
was supported by the buoyant market, increased mean weights of
harvested stock and a continued focus on improving operational
efficiency. Growing demand for salmon, particularly of Scottish
provenance, improved the price achieved and subsequently earnings
have risen substantially year on year with EBIT/kg before fair
value adjustment of £1.65 (H1 2016: £0.39).
The biological situation
remains challenging throughout the industry. However, the Scottish
Salmon company remains focused on biological improvements,
introducing a number of proactive and reactive strategies. The
Company's ability to manage the situation has improved
significantly compared to last year.
The Scottish Salmon
Company continues to advance their export strategy, leveraging the
value of its provenance and the continued demand for high quality
Scottish produce. During H1 2017, SSC entered new markets in in the
Far East and took actions to expand its presence in North America.
Together with Label Rouge salmon, the Native Hebridean Brand is
expected to be a key driver of export growth going forward. During
the first six months of 2017, export sales accounted for 52% of
value (H1 2016: 42%).
The Company continued
its focus during this period on increasing capacity and improving
operational efficiency. Consent was secured for an additional 2,000
tonnes at a site at Portree on the Isle of Skye with a number of
other proposals for site development underway. The Portree site
will be stocked in 2018 with first harvests anticipated in late
2019.
Investment in
infrastructure progressed throughout the period including the
purchase of the hatchery business, a longstanding supplier.
Craig Anderson, Chief
Executive Officer at The Scottish Salmon Company, said:
"Demand for premium
quality Scottish salmon across the globe has never been higher and
we have maximised the opportunities this provides, evidenced by a
record half year performance.
"Export sales have risen
exponentially in key territories like Japan, where we have just
exhibited at the Seafood Expo. The response to our products has
been overwhelmingly positive, particularly our unique Native
Hebridean Salmon which has such a strong provenance story.
"Our strategy for long
term sustainable growth is paying dividends with another site
expansion consented in the period and a robust pipeline in place.
Our programme of site development and securing long-term customers
relationships at home and overseas, are the fundamentals which
underpin this growth strategy and remain our key focus for the
remainder of 2017."
This information is subject
to the disclosure requirements pursuant to section 5 -12 of the
Norwegian Securities Trading Act.
SSC PLC Q2 2017 Presentation
SSC PLC Q2 2017 Report
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions 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
Seven Stars Cloud Group, Inc. (NASDAQ:SSC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Seven Stars Cloud Group, Inc. (NASDAQ:SSC)
Historical Stock Chart
From Sep 2023 to Sep 2024