Blumar keeps losing money
Blumar has been the first salmon producing company listed on the Santiago stock exchange to report Q3 results, showing losses in the period despite improved ex-cage costs.
Blumar’s returns from Atlantic salmon up to September 2015 totalled US$ 120.9 million, representing a 33 per cent decrease compared to the same period of 2014, when the company recorded sales of $180.5 million. This decrease is explained by the 19 per cent reduction in sales volume, reaching a total of 24,573 tonnes WFE, combined with an 18 per cent drop in the average sale price, to $ 4.92/kg WFE. At unit level, EBIT pre fair value adjustment totalled $ -0.30/kg, down from US$ 1.03/kg WFE in Q3 2014.
"These results are mainly due to the decline in the average price”, said the company.
In the first nine months of this year, Blumar’s trout sales have totalled $1.8 million - a 90 per cent decrease over the same period last year. This is explained by the 78 per cent decrease in physical sales and 53 per cent decline in the average price of the sales mix, to $2.76/kg WFE, down from US$ 5.93/kg WFE last year. At unit level, the company reported EBIT pre fair value adjustment of $ -2.84/kg WFE, compared to $0.58/kg in the same period of 2014. “Sales of trout in 2015 correspond to the liquidation of product inventory from December 31, 2014,” said the company.
Despite these negative results, the ex-cage cost experienced a slight improvement, from $4.7/kg WFE in Q2 2015 to $4.0/kg in Q3.
