Salmones Camanchaca gets additional net income thanks to high salmon prices

Salmones Camanchaca gets additional net income thanks to high salmon prices

Salmones Camanchaca reported an additional net income of USD 22 million in the second quarter of 2022 compared to the previous year. In other words, the average sales price of Atlantic salmon was USD 7.81/kg WFE, up 48% from Q2 2021.

To sum up, the operating revenue increased to USD 97.4 million, almost doubling from Q2 2021. The company justifies these gains by "higher spot prices, combined with a good product- and market mix".

On the other hand, costs have been impacted during this quarter because of algae blooms and oxygen deficiencies. Also, by inflationary pressure, particularly on feed. This translated into USD 4.05/kg live weight, which was 17.6% lower than last year.

In addition, group EBITDA for the quarter was positive USD 25.7 million, compared with a negative USD 10.6 million in Q2 2021. Operational EBIT before fair value adjustments ended at USD 21.2 million, up from a negative USD 14.6 million in Q2 2021.

Finally, the feed conversion ratio for the last 12 months was 1.13, the lowest level ever for Salmones Camanchaca. Further, biomass mortality for Atlantic salmon was 1.7%, reflecting that mortality is returning to normalized levels after 2021.

Regarding these results, vice chairman Ricardo García commented: "During this second quarter, the profitability of the business returned to normal as a result of the Atlantic salmon price increase. Due to high demand and a decrease in world supply."

"Added to the foregoing was the improvement in costs and the recovery of harvest volume, both affected in 2021 by algae blooms and oxygen challenges. Inflationary and feed cost pressures continue. It will be reflected in higher costs compared to our long-term trends estimates," he concluded.

About Salmones Camanchaca

Salmones Camanchaca S.A. is a vertically integrated salmon producer. It engaged in breeding, egg production, recirculating hatcheries for Atlantic salmon and pass-through or lake hatcheries for Coho salmon and trout, and fish farming sites in the estuary, fjord, and oceanic waters. These are used mainly for Atlantic salmon, primary and secondary processing, and marketing and sales of Atlantic and Coho salmon through five sales offices in its main markets.

The production target for both 2022 and 2023 is in the range of 50-60,000 MT WFE. The total production capacity for both Atlantic and Coho salmon is 65-70,000 MT WFE. The Company expects to reach it within three years. It participates in trout farming through a one-third share of a joint venture, which uses Salmones Camanchaca farming sites in coastal-estuarine waters, and currently plans to harvest an average of 9,000 MT WFE per year until 2028.

Salmones Camanchaca has 1,900 employees on average, 60% of whom work in its value-added plant. The main Atlantic salmon sales markets are currently the USA, Mexico, and Latam.

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