Turnover and operating profit before fair value adjustment of biomass are the highest achieved in the history of Lerøy Seafood

COMPANY OF THE WEEK: Lerøy Reports Extremely Positive Profits

Lerøy Seafood Group ASA (Public, OSL:LSG), a leading exporter of seafood from Norway, has recently published its preliminary financial figures for Q4 2010.

Lerøy Seafood's core activities are distribution, sale and marketing of seafood, processing of seafood, production of salmon, trout and other species, as well as product development

Highlights and Key Figures for 4Q 2010

• 35.8 thousand tons gutted weight of salmon and salmon trout harvested (Q4 2009: 35.0)
• Turnover NOK 2,574 million (Q4 2009: 2,184)
• Operating profit before fair value adjustment of biomass NOK 539.2 million (Q4 2009: 311.4)
• EBIT/kg all inclusive NOK 15.1 (Q4 2009: 8.9)
• Profit before tax and before fair value adjustment of biomass NOK 543.3 million (Q4 2009: 311.1)
• Spot prices for whole superior salmon have seen an increase of 37.3 percent compared with Q4 2009
• Net interest-bearing debt was NOK 1,299 million (NOK 1,443 million at 31 December 2009)
• Equity ratio 52.8 percent
• Acquired 51 percent stake in Jokisen Eväät OY in January 2011

Lerøy Seafood acquierd 51 percent of the shares in the Finnish company Jokisen Eväät OY in January 2011

In the fourth quarter of 2010, Lerøy Seafood Group had a turnover of NOK 2,574 million, representing an increase from NOK 2,184 million for the same period in 2009. The Board of Directors is very satisfied with the Group’s development and with the result achieved for the period, which is the highest result achieved in the history of the Group to date.

In the fourth quarter of 2010, Lerøy Seafood Group had a turnover of NOK 2,574 million, and in 2010 the Group has a turnover of NOK 8,888

The Group’s operating profit before fair value adjustment of biomass was NOK 539.2 million in the fourth quarter of 2010, compared with NOK 311.4 million in the fourth quarter of the previous year. The strong increase in operating profit compared with the same period last year is as high as 73.2 percent. This is explained by volume growth and improved prices for the Group’s main products, Atlantic salmon and salmon trout, and an extremely good development for the Sales and Distribution business segment.

The Group’s operating profit before fair value adjustment of biomass was NOK 539.2

As a result of the Group’s long-term industrial market strategy, the prices achieved for salmon and salmon trout will naturally deviate from the spot market prices.

Realised contract prices have been lower than prevailing spot prices in the quarter under review. The Group’s share of contracts was 45 percent in the fourth quarter of 2010 and will, based upon the current contract situation, be around 40 percent in 2011. Committed contract prices for 2011 are substantially higher than for 2010. Taking the above into consideration along with the Group's positive market outlook, this indicates that the Group can also expect to achieve good prices in the time ahead.

The sales and distribution segment showed an increased in operating profit

Despite considerably lower volumes in the fourth quarter of 2010 compared with the fourth quarter of 2009, the affiliated company Norskott Havbruk (owner of the Scotland-based Scottish Sea Farms Ltd) saw a good development in net earnings, thanks to good market conditions and satisfactory biology. Income from affiliated companies before fair value adjustment of biomass therefore increased from NOK 20.6 million in the fourth quarter of 2009 to NOK 23.8 million in the fourth quarter of 2010.

Lerøy Seafood Group has reported nine years with continious growth

About Lerøy Seafood Group ASA

Lerøy Seafood Group ASA is a leading exporter of seafood from Norway. The Group's core activities are distribution, sale and marketing of seafood, processing of seafood, production of salmon, trout and other species, as well as product development.  

Lerøy Seafood Group has built a new distribution centre in Stockholm

The Group operates through subsidiaries in Norway, Sweden, France and Portugal and through a network of sales offices that ensure its presence in the most important markets.  

Lerøy Seafood new hatchery to be built in Besvik with a capacity of 14,000 smolts

Source: Lerøy Seafood Group ASA

Margaret E.L. Stacey
Editor Companies and Products
[email protected]
www.seafood.media

Address:	Thormøhlens gate 51 B
City:	Bergen
State/ZIP:	(NO-5006)
Country:	Norway
Phone:	+47 55 21 36 50
Fax:	+47 55 21 36 32
E-Mail:	[email protected]
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