Russian Aquaculture raises operating profit by 3%
Salmon and trout farmer Russian Aquaculture’s operating EBIT increased by 3% to 2.057 billion roubles (£20.8 million) in the first half of 2020 compared to the same period in 2019.
“In the first half of the year, the company faced two serious challenges - falling markets amid a pandemic, and unfavourable climatic conditions,” said general director Ilya Sosnov in a press release.
“However, thanks to dedicated teamwork and quick response to market changes, we delivered strong operating results, maintained a strong business and demonstrated strong growth in revenues, adjusted EBITDA and cash flow.
“Record operating cash flow of RUB 2.4 billion was half invested in further development, and also, with the approval of the EGM, will be used to pay RUB 439 million as interim dividends. In general, we plan to adhere to regular dividend payments (both annual and interim) in the future, provided that there are no realised biological risks, with favourable operating indicators, balanced debt burden and sufficient funding for the investment programme.”
EBIT/kg of £2.17
Russian Aquaculture, the country’s largest fish farmer, said it remains one of the most efficient aquaculture companies in the world with EBIT / kg at RUB 214.1 (£2.17 or NOK 25.30) based on the results of the first half of 2020.
Despite the improved figures, the company made a net loss on paper of RUB 402m in H1 due to the revaluation of biological assets.
“As of June 30, 2020, some of the fish did not reach the marketable weight due to the low water temperature in the first half of 2020,” said the company.
“At the same time, July and August were favourable in terms of temperature conditions, fish growth was strong and due to this, part of the growth lag was already compensated.”
