Optimistic outlook for SSC
High prices, improved exchange rates and the launch of a number of unique new products have combined to give the Scottish Salmon Company (SSC) a solid start to the year.
According to the Q1 results published today, revenues were £29.1m (Q1 2015: £27.3m) on harvested volumes of 6,741 tonnes (Q1 2014: 6,261 tonnes). Harvest volumes compared favourably both year on year and with the previous quarter.
In contrast to Q4, where weather conditions and routine maintenance impacted on harvesting, the majority of sites performed in line with expectations in Q1, delivering increased harvests.
Market conditions have been encouraging throughout the quarter with industry prices continuing to rise in response to growing consumer demand and lower output from Chile. Exchange rates have also been more positive with the Norwegian Krone strengthening, allowing the company to secure better prices in the traded market in Sterling.
Investment in growing export markets has continued, with a major presence at two key trade shows - Brussels Expo and Seafood Expo North America in Boston - the first of 11 planned throughout 2016. Exports accounted for 43% of total revenues in the quarter.
The company's Native Hebridean Salmon was launched to the international market in Brussels, marking a major milestone in its innovative broodstock programme. Following several years of research and development, SSC has produced a salmon with unique lineage and full traceability. Bred from stock sourced directly from the waters off North Uist in the Outer Hebrides, the premium salmon has greater muscle density than other farmed salmon.
Additionally, further value was driven from the company's Label Rouge accreditations - France's coveted marque of quality - with the range extended to include packaged fillets for European markets.
Craig Anderson, SSC's Managing Director, said: "While 2015 was not without its challenges, we secured our second highest volumes and turnover. We have continued this positive performance into 2016, demonstrating year on year growth and clear progress with our export strategy through marketing and innovation.
"There were fewer external factors impacting on harvesting this quarter and the majority of sites met their projected yield. A further 2,000 tonnes of consent is due to become operational this year, increasing harvest volumes as part of our long term plan for sustainable growth.
"We have enjoyed a solid start to 2016 and, with strong prices forecast for the rest of the year and growing consumer demand, we are well placed to meet our growth targets. Provenance remains at the heart of our business and we have ambitious plans for our exclusive new Native Hebridean Salmon range."
