SalmoBreed earnings take a dip in 2017/18
Salmon egg supplier SalmoBreed, part of UK-based aquaculture health, nutrition and genetics business Benchmark, had lower turnover and operating profit in the last financial year than in 2016/17.
Turnover for 2017/18 was NOK 173 million, (NOK 181m) and the operating profit was NOK 6m compared to NOK 17 million for the 2017/2016 financial year, when the company had gone into the black after previous negative results.
The accounts presented are for the period from October 1, 2017 to September 30, 2018.
Due to relatively high financial expenses, profit before tax was reduced from NOK 15m to NOK 1m, and the final profit for the year decreased from NOK 11.5m to NOK 1.2m.
In the annual report, the board points out that the company has no external funding, and that all debt is for group executives.
Positive to the future
The board also writes that the interaction between manufacturers, the professional environment and the marketing department had developed positively through 2018.
“The company expects a continued development towards increasingly advanced products that will result in higher margins.”
They also believe that land-based roe production will provide a basis for increased value creation in the years to come.
“Together with newly-entered-into genetics agreements, this will provide a basis for increased revenue and earnings,” the board writes.
ISA at brood facility
During the year SalmoBreed completed the construction of a new broodfish plant in Sørfold municipality in Nordland, through the subsidiary SalmoBreed Salten AS.
After the end of the financial year, in October 2018, infectious salmon anaemia (ISA) was once again proven at the brood facility of Salmar Genetics AS, where SalmoBreed owns 50% of the shares. This meant that 100 broodfish had to be destroyed.
“The plant was quickly approved by the Norwegian Food Safety Authority for further production of eggs, and negative consequences are expected to be smaller than for last year’s event,” they write.
In October, it was also made clear that the licence agreement between Grieg Seafood Rogaland and SalmoBreed, which expires on June 30, 2019 will not be renewed after this date.
“SalmoBreed will then be able to deliver roe from its new plant in Salten, from Iceland and from other licensed producers,” writes the board.
