Huon Aquaculture's salmon product.(Photo: Huon Aquaculture)
AUSTRALIA
Thursday, February 26, 2015, 03:00 (GMT + 9)
Huon Aquaculture Group Limited has announced solid profits in the results achieved in last half of the year ended 31 December 2014.
The company’s net profit after tax from June to December 2014 was AUD 25.9 million (USD 20.2 million), representing an 11.5 per cent increase over the same period last year due to the fair value adjustment of biological assets.
The Group attributes its biological asset rise to good production growth for next year’s fish harvest, as well as the performance of the new Fortress pens and feed barges, improved farming practices and environmental conditions, which in turn will ensure adequate market supply.
The Tasmania-based seafood producer’s EBITDA showed a 10 per cent increase in the reported period, reaching AUD 43.1 million (USD 33.5 million) vs. AUD 39.2 million (USD 30.5 million) in the same term of 2013.
Huon’s cost per kilogram was reduced by AUD 0.54 per kilogram (USD 0.42/kg) representing an 9 per cent contraction yoy.
However, operating margins decreased owing to short-term impacts associated with implementing the Controlled Growth Strategy. Costs related with the Initial Public Offer (IPO) of AUD 1.1million (USD 0.86 million) have been acknowledged in the current reporting period, both factors having a negative impact on the profit for the period.
“Our strong cash position means the Company is well placed to deliver the Controlled Growth Strategy as planned,” stated the Group Managing Director and CEO, Peter Bender.
Huon has also re-established appropriate export channels into key Asian markets to distribute additional volume from stronger than expected production growth in first half of 2015 and will continue to utilise export channels to distribute additional volumes for the remainder of the year.
Regarding the new facility the company is about to open, Bender said it would allow them to expand their focus on new product development and assist Huon to continue optimising sales channel mix.