April 15, 2010

Greek Selonda Group sees growth in 2009

The Greek aquaculture company Selonda Group reported a total turnover of EUR136 million (US$184 million) last year, compared to EUR120 million (US$162 million) in 2008, an increase of 13.5%.

The significant rise in the Selonda Group's sales volume of sea bream and sea bass led to an increase in the total turnover, despite the low market prices of sea bream during the first quarter of 2009, which was a continuation of the 2008 price crisis. Approximately 90% of the Selonda Group's sales volume is exported.

The combination of increased sales volumes and low prices significantly affected the developments in the sea bass and sea bream industry, which by 2010 had resulted in a reduction of the number of producers and a decrease in the total production volume, while the demand for farmed fish continued to increase.

For the second quarter of 2010 there are clear indications that there will be an increase in the market prices of sea bream and sea bass, which, in combination with the policy of cost reductions that the Group is implementing, will lead to a significant increase in the profitability of the Selonda Group.

The consolidated Earnings before Interest, Tax and Depreciation (EBITDA) in 2009 were EUR21.4 million (US$29 million) or 15.74% of the total turnover, while the EBITDA in 2008 was EUR21.9 million (US$30 million) or 18.18% of total turnover.

Net earnings after tax and minority interest in 2009 amounted to EUR0.2 million (US$0.27 million) or 0.12% of total turnover, compared to EUR1.2 million (US$1.63 million) or 1.05% in 2008. Net earnings were negatively affected by the decrease in the profit margin of fish sales, due to low market prices and increased production costs, as well as a charge of EUR0.77 million (US$1.04 million) resulting from the consolidation of Fjord Marin Turkey in the Selonda Group's financial statements.

"After three very difficult years the Mediterranean aquaculture sector is returning to normal supply and demand conditions," said John Stephanis, the CEO of Selonda and President of FEAP.