Fish oil capsules. (Photo Credit: George Hodan)

Omega Protein faces drop in revenues in Q3

Nutritional product company Omega Protein Corporation (OME) reported revenues amounting to USD 70.8 million for the third quarter in 2014 compared to USD 87.6 million in the same period a year ago, representing a 19 per cent decline.

The firm explains that this decrease was due to a USD 24.7 million decline in animal nutrition revenues because of lower sales volume for the Company's fishmeal and fish oil, partially offset by a USD 7.9 million increase in human nutrition revenues, which is attributable to the acquisition of Bioriginal Food & Science Corp. in early September.

The firm also reported a reduction in the adjusted EBITDA from USD 27.1 million in the third quarter last year to USD 9.3 million for the quarter this year.

"We remain focused on executing our strategic initiatives to drive long-term growth. These initiatives include leveraging our recently strengthened human nutrition product portfolio with the acquisition of Bioriginal Food & Science Corp., as we further diversify and balance our business to take advantage of global health and wellness trends," commented Bret Scholtes, Omega Protein's President and Chief Executive Officer.

"Our third quarter results reflect previously discussed declines in fish catch and fish oil yields compared to last year's exceptional season, which offset continued favorable pricing dynamics in our animal nutrition segment," Scholtes added.

Considering the first nine months of 2014, there was a 16 per cent increase in revenues, amounting to USD 206.2 million compared to revenues of USD 178.3 million for the nine months ended September 30, 2013.

The increase in revenues was due to a USD 19.0 million increase in animal nutrition revenues and an USD 8.8 million increase in human nutrition revenues because of higher sales volumes for the Company's fish oil and higher sales prices for the Company's fishmeal.

Omega Protein operates eight manufacturing facilities located in the United States, Canada and Europe and more than 30 fishing vessels to harvest menhaden, a fish abundantly found off of the coasts of the Atlantic Ocean and Gulf of Mexico.

Photo Credit: George Hodan

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Address:	2105 City West Boulevard Suite 500
City:	Houston
State/ZIP:	Texas (77042-2838)
Country:	United States
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