April 3, 2012
Fishing company Camanchaca reported a loss of US$22 million last year although revenue had risen by 26%, according to the reported financial results for the year 2011.
The company explained that more than half of its loss, about US$12.5 million, is due to extraordinary non-recurring events.
Among the causes of the non-extraordinary loss, Camanchaca highlights the 15% drop in the price of fishmeal, the 34% increase in fuel costs and the underutilization of its production capacity in the Salmon branch.
Nevertheless, the income of the company experienced a 26% increase in 2011, reaching US$326 million compared to US$258 million in 2010. This growth was attributed to an increase of 40% in catches of anchovy in the northern area and to a larger quota of pelagic species obtained for the central-southern area following its merger with Pesquera BÃo-BÃo.
Sales of fishmeal accounted for more than half of the revenue recorded in 2011. Therefore, the decrease in the price of this product was identified as one of the causes for the recorded loss last year.
In addition, the occupation of only 25% of the total installed production capacity resulted in increased production costs that contributed to the generation of huge loss.
Besides, Camanchaca highlighted that it was impossible for the firm to obtain benefit -- as it did happen with other companies -- from the high price of salmon recorded in the first half of 2011, as it was harvested in the last quarter of the year, when prices for Atlantic salmon (Salmo salar) had fallen by 30%.
Ricardo GarcÃa, Camanchaca general manager, stressed his company reacted quickly in response to the structural situation that was arisen by the fisheries reality in the central-southern area. It took place after the merger with Pesquera BÃo BÃo, "integrating two cultures and kinds of knowledge quickly and efficiently, all to support the business viability in the future."
For the 2012 fiscal year, the manager said that he expects to increase salmon production to about 42,000-45,000 tonnes, considering Atlantic salmon and trout, compared with 12,000 tonnes produced in 2011.
To achieve this objective, the intention is to use 80-85% of the installed capacity the company has, which will enable a reduction in production costs.
This month, Camanchaca again managed to renegotiate its liabilities with the bank and obtained new credit lines that will facilitate the continuation of its expansion process.
