Nine month losses near $70 million
Empresas AquaChile recorded losses of US$ 68.88 million in the first nine months of the year, of which $36 million occurred during Q2, with the low prices faced by the sector largely to blame.
The company's salmon division registered a 16 per cent decrease on returns compared to the previous year, due to the decline in sales volumes of coho salmon and trout, as well as the decrease in the prices of all three salmonid species.
Its production of Atlantic salmon experienced a 4 per cent increase in returns compared to the same period of 2014, due to a 31 per cent increase in sales volume, which was partially offset by a 21 per cent decrease in the price. Meanwhile, at unitary level, accumulated EBIT pre fair value adjustment (pre-FVA) was US$ -0.93/kg WFE (compared to US$ +0.28/kg WFE in the same period last year). "The observed decrease in margins is mainly explained by a decrease in the export price," Aquachile explained.
In turn, its trout business reported a 35 per cent decrease in returns compared to the same period of 2014, due to a 10 per cent drop in sales volume combined with a 28 per cent reduction in price. Accumulated EBIT pre FVA was US$ -1.22/kg WFE (versus US$ +0.89/kg WFE in the same period of 2014). This cut in margins was explained by Aquachile as "mainly due to a decrease in the export price and an increase in costs compared to the same period of 2014".
Meanwhile, its coho production returns shrank by 47% compared to the same period last year, due to a 41 per cent decrease in sales volume and an 11 per cent decrease in price. Accumulated EBIT pre FVA fell to US$ +0.28/kg WFE, compared to US$ + 0.67/kg WFE in the same months of 2014. According to the company, this decline was due to the drop in export prices, which were partially offset by a decrease in costs compared to the same period last year. "The decrease in volume is due to the marketing strategy followed in the previous season, to anticipate much of the sales during the last quarter of 2014," the company said.
On a brighter note, the company revealed that their current generation of fish have shown low mortality rates and good growth, while production costs have shown a downward trend, in line with the company’s production strategy, which has been focused on increasing productivity and reducing indirect production costs.
