February 24, 2012


Leroy Seafood Group turnover drops in Q4 2011



Leroy Seafood Group saw a drop in revenue during the fourth quarter of 2011, at NOK2.25 billion (US$401 million) compared to NOK2.57 billion (US$458 million) at the same time previous year.


Operating profit before fair value adjustment of biomass was NOK120 million (US$21.4 million) compared with NOK539.2 million (US$96.2 million) - a decrease caused by substantially lower prices for the Group's main products, salmon and trout, plus higher costs.


Associated company Norskott Havbruk (owner of the Scotland-based Scottish Sea Farms Ltd) achieved much lower net earnings in Q4 2011 as well compared with Q4 2010.


The figures reported by associated companies before fair value adjustment of biomass therefore saw a reduction from income of NOK23.8 million (US$4.24 million) in the fourth quarter of 2010 to a loss of NOK2.3 million (US$409,681) in the fourth quarter of 2011.


The Group's profit before tax and fair value adjustment of biomass in Q4 2011 was NOK95.7 million (US$17 million) against NOK543.3 million (US$96.8 million) a year prior.


Leroy harvested 39,600 tonnes of salmon and trout compared to 35,800 tonnes in the fourth quarter of 2010. EBIT/kg was NOK3.0 (US$0.53) compared to NOK15.1 (US$2.69).


For 2011, Leroy Seafood Group had a turnover of NOK9.18 billion (US$1.64 billion) - a record -- up from NOK8.89 billion (US$1.58 billion) in 2010 and an increase of 17% from 116,800 tonnes harvested in 2010 to 136,700 tonnes in 2011. Operating  profit before fair value adjustment  of biomass was NOK1.21 billion (US$216 million) compared with NOK1.59 billion (US$283 million) in 2010, because of substantially lower prices achieved for salmon and salmon trout in H2 2011 together with higher costs throughout the year.


In 2011, the Group had an operating profit after fair value adjustment of biomass of NOK597.1 million (US$106 million) against NOK1.89 billion (US$337 million) in 2010.


The Group expects growth in the global supply of Atlantic salmon to grow in 2012 compared with the past two years.  Development in demand is good and lower prices are allowing for optimism, the company said.


Still, the Board of Directors anticipates a considerably weaker result for the Group in the first quarter of 2012 than was achieved in the first quarter of 2011, and correspondingly for 2012 as a whole.