September 18, 2023

 

Net profits dropped over 25% for Blumar in Q2

 

 

 

Chile-based Blumar's Q2 2023 net profits fell over 25% as its fishing operations performed solidly but not enough to make up for the company's lackluster performance in its salmon-farming segment.

 

The seafood firm's revenues increased 10.5% year-over-year to US$206.8 million in Q2 2023, compared to the US$187 million it brought in during Q2 2022. Its earnings before interest, taxes, depreciation and amortization (EBITDA) slipped 0.82% to US$51.4 million compared to US$51.8 million in Q2 2022, while net profits fell 25.4% to US$19.9 million – a sizable slide from the US$26.6 million  the company earned in the same quarter a year ago.

 

For the first six months of the year, salmon comprised the majority of Blumar's revenue, bringing in US$204.4 million, representing 53% of the company's total. Fishmeal and fish oil followed at US$91.4 million, taking up 23% of revenue. Next came frozen horse mackerel, bringing in US$64.3 million and representing 17% of the total. Finally, whitefish and other products comprised the remaining 7% at US$29.1 million.

 

However, Blumar's salmon-farming segment's revenue slipped 1.3% to US$90.4 million during the quarter when compared to the second quarter of 2022. The segment's EBITDA plunged 71.7% year over year to US$4.2 million and its net profit fell US$7.2 million into the red, compared US$6.5 million in the second quarter of 2022.

 

To date this year, 69% of Blumar's salmon has gone to the United States, 12% to Latin American countries, 11% to Asia, 6% domestically to Chile, and 2% to Europe.

 

Blumar noted that on an international level, sales prices were down for salmon. A sustained rise in costs, principally due to the increased cost of feed and raw materials as well as other increased costs due to inflation, exacerbated its financial predicament.

 

During the quarter, the company produced 13,693 tonnes of fishmeal, down 19% compared to Q2 2022. It also produced 5,105 tonnes of fish oil, up 14% year over year, and 50,145 tonnes of frozen horse mackerel, up 34% year over year.

 

Blumar sold 18,564 tonnes of fishmeal in Q2, slipping 1% year over year, but the average price received increased 3% to US$1,896 per tonne during the quarter, bringing total sales up 1% to US$35.2 million. The company attributed the Q2 price increases due to uncertainty brought on by the effects of El Niño that resulted in a high presence of juvenile anchovies off the waters of Chile. Half of its fishmeal went to its primary market of China, and a quarter was sold to South Korea.

 

Blumar's frozen horse mackerel sales were up 31% in volume, amounting to 37,407 tonnes but prices for this product were down 9%, dropping to US$916  per tonne and bringing in total sales of US$34.3 million. Total sales were up 19% when compared to Q2 2022. Blumar said Africa was the main destination for this product, representing 88% of total exports, with Nigeria being Blumar's main customer in this segment.

 

- SeafoodSource