Tassal closes latest financial year with better results

Tassal is confident its results will keep improving in 2015. (Photo Credit: Tassal)

AUSTRALIA
Wednesday, November 05, 2014, 01:30 (GMT + 9)

The country's largest salmon producer, Tassal, achieved an EBITDA amounting to AUD 63.5 million (USD 55.4 million) in the 2014 financial year ended 30 June, which represents a 7.3 per cent growth in comparison with AUD 59,2 million (USD 51.6 million) it reported in the same period last year.

Besides, during this period the firm’s EBIT experienced a 10 per cent growth, reaching AUD 48 million (USD 41.6 million) versus AUD 43.7 million (USD 38.1 million) in the 2013 financial year.

“Overall, the FY2014 results provide clear evidence that the company’s strategy is delivering on improved profitability and returns. Following the difficult supply period, Tassal was able to implement strategies to decrease further pressure of future supply and grow biomass, which has in turn allowed the company to sustainably grow future domestic market sales,” the firm’s annual report states.

One of the strategies the firm has implemented due to the effects of the hot 2012-2013 summer was to reposition its fish input and feed diet in order to focus on the growing domestic per capita consumption through its marketing campaign and ultimately return to a more balanced supply mix across both domestic wholesale and retail sales channels.

In addition, to further risk mitigate summer water temperatures, the firm has carried a harvest strategy in South East Tasmania so as to harvest fish at a quicker rate and therefore maximise survival of fish and accordingly, maximise fish biomass.

Tassals' executives reported that amoebic gill disease (AGD) remains a significant issue and hopes that the harvest strategy, together with additional fish now grown in Macquarie Harbour (where there is no AGD) and with 100 per cent of the fish now from the Selective Breeding Program, the risk will be mitigated.

For the financial year 2015, the company will be focused on maintaining and growing high value domestic market segments and reducing growing costs to further grow higher domestic sales/kg returns.

Furthermore, the company will focus on future strategic expansionary programmes and reducing operating costs.