Russian Aquaculture profit up 117% as volumes rise

Sales of finished product increased by 75% year on year to 18,000 tonnes, boosting revenue by 73% to 9.69 billion rubles (£99 million).

Adjusted operating EBIT increased by 52% to RUB 3.339 bn and net profit by 117% to RUB 4.809 bn. But adjusted operating EBIT per kilo fell by 22% from €2.7 to €2.1.

Operating EBIT per kilo for the third quarter, when Russian Aquaculture sold 5,100 tonnes of product, was €3.0. Adjusted operating EBIT was RUB 1.298 bn, an 803% increase on Q3 2020.

Growth rate

Net profit for the first nine months was RUB 4.8 bn, an increase of 117% year-on-year due in part to improved fish growth rate, which had a positive effect on the revaluation of biological assets.

Chief executive Ilya Sosnov said the volume of the Russian market grew 45% year on year in the first nine months of 2021.

“We are seeing a steady increase in the consumption of salmon and in demand for quality chilled salmon, which affirms the fundamental appeal of the Russian market and the growth potential for our business,” said Sosnov. “In this regard, we continue to invest heavily in both equipment and production assets.”

RUB 2.4 bn investment

Russian Aquaculture, which farms trout in lakes in the Republic of Karelia, which borders Finland, and salmon further north in the Barents Sea in the Murmansk region, invested RUB 2.4 bn in the first nine months of 2021. Most of the money was allocated for farm equipment, the exercise of an option to purchase the company’s fish processing plant and the purchase of marine vessels.

The company owns cultivation rights for 39 sites with a total potential production volume of around 50,000 tonnes and is focused on developing its aquaculture business. Biomass totalled 29,800 tonnes at the end of September 2021, compared with 22,300 tonnes at the end of September 2020.