May 24, 2010

 

Salmones Multiexport Q1 profits peak

 

 

Chilean Multiexport Foods' subsidiary Salmones Multiexport achieved an EBIT of US$1.9 million and EBITDA of US$3.6 million, in the first quarter 2010 - the highest for two years.

 

Sales of salmon and trout production totalled 8,603 tonnes of raw material (WFE) in the first quarter of 2010, which represents a 15.8% decrease compared to the same period in 2009, when sales were 10,214 tonnes.

 

However, for the quarter production was 11,039 tonnes (WFE), a 17.8% increase compared to the same period in 2009. This declining in sales and increased harvesting in the first quarter of 2009 is explained by the high amount of raw material from 2008 sold in early 2009.

 

In the first quarter, the net loss was US$93,000, which compares favourably to the US$21.0 million losses from the same period in 2009, being the first quarter after two years in which losses are not recorded.

 

During the first two months of year 2010, global exports of harvested salmon products fell 6.4% compared to the same period of 2009.

 

This was mainly due to the lower volumes exported from Chile, which took a 25.8% dive. Exports from other producing countries had a 9.1% growth, mainly from Norway, UK and Ireland.

 

The reference price (Urner Barry) of Chilean Atlantic salmon fillet (2-3 pound caliber) in the US market in the first quarter of 2010, averaged US$4.63 per pound, which represents an 39.3% increase on the same period of 2009 (US$3.32 per pound), explained by the a steep reduction from Chilean supply. In the last week of April, the price reached record levels of US$6.00 per pound, 47.1% increase on the price of December 2009 (US$4.08 per pound).

 

The average reference price (FIS) of Chilean trout (4-6 pound caliber) in the Japanese market during the first quarter of 2010 was JPY560/kg, which represents an increase of 14.5% compared to the same period in the previous year (JPY489/kg). In April the price is at levels of JPY610/kg, 13.0% increase over the price ended December 2009 (JPY540/kg).

 

From April 26, 2010, the Chile′s National Fisheries department (Sernapesca) reported that there are no centres with ISA outbreaks and only five qualified as suspects.

 

On March 10, Congress approved amendments to the Fisheries Law. This law is considered key to recover the sector, as it is expected to bring a legal support to banks and investors, reducing uncertainty and increasing confidence in the sector.

 

Multiexport Foods total income was US$49.5 million in the first quarter of 2010, compared to US$43.5 million in the same period in 2009, representing a 13.7% increase. The company's EBITDA in the first quarter of 2010 was US$3.3 million, which compares very favourably to the US$14.1 million loss from the same period of 2009.