Salmones Camanchaca has presented its 2Q2023 results, in which the company has followed its plan to the letter. This period has reflected a solid and adaptive strategy, focusing on mitigating risks and exploiting opportunities in the market. Despite the challenges, the company has demonstrated its ability to remain agile in a changing environment, and its focus on continuous improvement holds promise for its future.
"The results obtained in the second quarter are clearly weak, but they are partially a reflection of strategic decisions taken to reduce environmental risks in the X region fjords, increasing smolt stocking further south, and improvements and maintenance in the processing plant that was closed for half of the quarter," said Ricardo García, vice chairman. "All this led to an extraordinary and non-recurring decrease in the volume harvested, processed, and sold."
One of the key strategies of its plan during 2Q2023 has been to reduce the salmon harvest volume. This decision has been taken as part of a plan to mitigate risks and ensure the quality and sustainability of operations. For this reason, even though the total harvest volume for the 2022-2023 season was 5856 metric tons (MT), it represents more than a doubling compared to 2Q2022.
During 2Q2023, Salmones Camanchaca harvested 6,423 MT WFE (wet weight equivalent) of Atlantic salmon. Although this figure represents a 48% decrease compared to 2Q2022, it was part of the catch strategy of the company.
Furthermore, and always keeping this strategy in mind, the smolt planting is expected to significantly increase harvest volumes for the next season, 2023-2024. This is one more step in Salmones Camanchaca's plan to ensure sustainable and stable production in the future. "For the second half of the year, we expect to harvest more than two thirds of the annual volume. We estimate will be slightly higher in a range of 56 to 60 thousand MT, with close to 80% being Atlantic salmon," said García.
Looking at the sales aspect, the results had some differences, but the good news is that the sales of Coho salmon performed well this quarter. Specifically, the figures show a significant increase over the previous year, up 148% to reaching 1254 MT WFE sold. An achievement that reflects the agility and adaptability of Salmones Camanchaca to quickly adapt to formats and a market where salmon prices have experienced some decline.
However, results were not uniformly positive in all areas. Several factors, including planned facility closures for maintenance and upgrades, impacted spending on unused assets and EBIT (earnings before interest and taxes). In addition, lower Atlantic salmon sales volumes and cost increases impacted financial results for the quarter.
Another aspect highlighted in the financial report is the biological conversion of Atlantic salmon. The biological conversion ratio is an indicator, that measures the efficiency in the conversion of feed into growth of the salmon and this case has reached a value of 1.08. In addition, other productivity indicators, such as the FIFO index and smolt productivity, also show improvements compared to previous years.
Salmones Camanchaca is leading producer, specializing in breeding, egg production, and updating hatcheries for Atlantic salmon, Coho salmon, and trout. They also excel in primary and secondary processing and marketing, and sales of premium salmon. With a strong presence in key markets, we operate five sales offices to cater to our valued customers.
