Salmon farm in Tasmania. (Photo: Tassal)

Tassal experiences slight profit drop but forecasts growth for 2019

Tasmanian-based salmon and seafood producer Tassal’s net profit for the financial year 2018 dropped by 1.4 per cent, to AUD 57.3 million (USD 41.4 million) year on year but the firm forecasts an increase in harvest production and sales for the next financial year.

The Group also reported a decline in earnings before interest, tax, depreciation and amortisation by 4 per cent, to AUD 110 million (USD 59.5 million) compared to the corresponding financial year 2016.

2018 EBIT declined to AUD 87.0 million (USD 62.8 million), 7.1 per cent lower than that in the financial year 2017.

Nevertheless, the Group’s CEO & Managing Director Mark Ryan and chairman Allan McCallum explained the company had a strong balance sheet which had been “significantly de-risked”.

“We are actively investigating strategic growth opportunities which unlock large synergies in the seafood supply market,” they said.

The executives also explained that opportunities continue to be presented and assessed - like prawn farms - in the seafood value chain to diversify earnings and as a risk mitigation strategy.

“Demand for seafood in Australia is forecast to outstrip seafood and aquaculture growth, and analysts are signalling strong demand growth from China and North and South America,” they pointed out.

One factor behind Tassal’s positive outlook included fish size growth. Live fish size up to June 30, 2018 was up 5.3 per cent resulting in 5.5 per cent increase in live biomass for harvest tonnage in the financial year 2019.

During the analysed period, wholly owned Tassal subsidiary De Costi Seafoods bought prawn aquaculture operation the Fortune Group for AUD 31.9 million (USD 23.0 million), involving three prawn farms, in New South Wales and Queensland.

Tassal says that the acquisition will increase shareholders' earnings and expects to spend about AUD 34 million (USD 24.5 million) on a capital works program for the prawn business over the next two to three years.

In addition, the company has implemented a remote feeding strategy which has commenced with a roll-out programme that will see all pens remotely fed by December 31, 2018. It said that its new “well Boat and Feed Centre likely to drive both cost and operational efficiencies in the medium term.”


[email protected]
www.seafood.media

Address:	2 Salamanca Square
City:	Hobart
State/ZIP:	Tasmania (7001)
Country:	Australia
Phone:	+61 1300 660 491
Fax:	+61 1300 880 179
E-Mail:	[email protected]
More about:

 

 

 

 

Print