One of Groupe Aqualande's fish farm. (Photo Credit: Aqualande)

Norway Seafoods to sell operations in France

NORWAY
Tuesday, February 19, 2013, 04:40 (GMT + 9)

Norway Seafoods will sell most of its production operations in France for more than EUR 6 million during the second quarter of 2013, under an agreement signed last month with Groupe Aqualande SAS.

The transaction includes the sale of five trout farms on land, with the biomass and the operating unit, and the transfer of 30 employees to the French firm. The transaction is expected to close in the second quarter when the cash payment of between EUR 6.5 million and EUR 7.0 million, depending on the biomass at the end, is settled.

This operation is one of the aspects highlighted by Norway Seafoods in its financial report for the fourth quarter of 2012, a period in which its revenues were NOK 374 million (EUR 50.5 million), compared to NOK 344 million (EUR 46.4 million) in 2011. The company attributes this improvement to increased production and higher sales volume.
 
Meanwhile, revenue in the fourth quarter of 2012 came to NOK 374 million (EUR 50.5 million), compared to NOK 344 million (EUR 46.4 million) for the same period in 2011, primarily as a result of increased production and higher sales volumes.

EBIT for the fourth quarter was NOK -6 million (EUR -809,699) compared to NOK 1 million (EUR 134,950) the year before.

As far as margins on white fish products, they fell in the fourth quarter compared to the same period in 2011 with lower prices and lower raw material costs. Margins on fresh and frozen value-added products dropped as well in the fourth quarter compared to the same period the year prior.

For the sold volume of primary processed products, Norway Seafoods was able to move 4,956 tonnes in the fourth quarter compared to 4,191 tonnes for the same period in 2011. Sales of whole unprocessed fish increased from 3,393 tonnes to 4,864 tonnes in Q4.

For 2013, the company’s outlook is that increased supply will result in more volatile market prices, and that the availability of raw material and quality of raw material are both expected to improve compared to previous years. Lower revenues are anticipated for value-added products, and margins will be weaker due as a result of the higher prices for salmon.

Norway Seafoods said it will continue to improve on product innovation, market development and efficiency, and that it is considering divesting its remaining operations in France during 2013.

By Natalia Real
[email protected]
www.seafood.media

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