Fish feed transportation. (Photo Credit: Ewos)
NORWAYThursday, November 06, 2014, 03:50 (GMT + 9)
Leading feed and nutrition supplier Ewos experienced lower margins and volume reduction in Norway mainly resulting from market share losses, temporary shifts in volume due to physical quality and adverse biological conditions in the third quarter of 2014.
“It has been a busy last three months for our organization with excellent performance in most markets, but a challenging third quarter in Norway. In the third quarter we also made good progress to resolve the outstanding receivables issues we have had in Chile,” pointed out EWOS Group CEO Einar Wathne.
In the first nine months of 2014, the firm obtained an EBITDA decrease by NOK 23.6 million (USD 3.4 million), or 5.1 per cent, from NOK 459.6 million (USD 67.3 million) in the first nine months of 2013 to NOK 436.1 million (USD 63.8 million) in the same period this year.
However, operating revenue increased by NOK 463.9 million (USD 67.9 million) (5.9 per cent), from NOK 7,855 million (USD 1,150 million) in the first nine months of 2013 to NOK 8,319 million (USD 1,218 million) in the first nine months of 2014.
Besides, sales volumes also grew by 46.6 thousand tones year over year, to 875.7 thousand tonnes for the analysed period this year.
Meanwhile, the firm reported strong growth during the first half of 2014 in all markets except Chile, where operating revenue decreased slightly by NOK 21.3 million (USD 3.1 million) (0.8 per cent) year on year, reaching NOK 2,533 million (USD 370.9 million) in the first nine months of 2014.
Nevertheless, there was a rise in operating revenue in Canada by NOK 95.3 million (USD 13.9 million) (27.3 per cent) from January to September this year and reached NOK 444.6 million (USD 65.1), resulting from improved biological conditions in Western Canada and increased exports.
And operating revenues also grew in Scotland by NOK 179.2 million (USD 26.2 million) (21.1 per cent), which reached reaching NOK 1,029 (USD 150.7 million) compared to the first nine months of 2013. This increase was due to currency translation effect from the increase of the British Pound versus the Norwegian Kroner, and to an increase in sales volumes.
Furthermore, operating revenue in Vietnam increased significantly by NOK 63.6 million (USD 9.3 million) (59.7 per cent) in the analysed period, resulting from a strengthening of EWOS’s market share.
The Norwegian and Scottish salmonid feed market grew during the first half of 2014 mainly due to higher sea temperatures compared to the unusually low sea temperatures in the first half of 2013. However, in the third quarter there has been a small drop in the feed market compared to the third quarter last year.
EWOS has supported the acquisition of Nova Austral S.A. from Acuinova Chile S.A. andPesca Chile S.A. performed by one of its affiliates. Therefore, it is expected that EWOS will be able to help one of its important customers return to operating at its full potential. Nova Austral will continue to operate as an independent company, with EWOS supplying feed on commercial terms.