February 28, 2008

Tassal reports 35.1-percent decrease in 2007 second half profits

Tassal Group, one of the Australia's leading aquaculture company, reports a 35.1-percent decrease of profits in its second half of 2007 while forecasting a rosy second half for 2008.

The company's 2007 second half profits (after-tax) amounts to AU$8.45 million (US$8 million), down from AU$13 million (US$12.2 million) in the same duration in 2006.

The result was affected by the marketing spend that has increased by AU$1.6 million (US$1.5 million) in the second half of 2007 compared to the same duration in 2006, according to Tassal.

The company said it will undergo restructuring in its marine and processing infrastructure in the first half of 2008. It also stated its intention to strive for financial and operational growth opportunities.

Meanwhile, Tassal is flexing its muscles; the company states its confidence in the second half of 2008, as they expect positive earnings from domestic market growth and an improved cost base from restructuring.

The company also expects benefits to their second half earnings from their recent acquisition of Superior Gold, which is a brand of pre-packaged smoked salmon and trout.

Based in Tasmania, Tassal Group is a salmon farming operation, marketing 70 percent of the Tasmanian salmon industries production.