Record Q3 revenue for Scottish Salmon Company as harvest increases
The Scottish Salmon Company (SSC) harvested 6,791 metric tons (MT) of farmed salmon in the third quarter of this year, up from 5,486 MT in Q3 2016, achieving a record revenue for the three-month period of GBP 39 million (USD 51.7 million, EUR 43.9 million), an increase of GBP 13.8 million (USD 18.3 million, EUR 15.5 million) year-on-year.
The Edinburgh, Scotland-headquartered company confirmed that the increased revenue was driven by higher harvesting volumes and higher prices compared with Q3 2016. But it added that its prices became constrained at the end of the quarter due to harvesting smaller sizes and accelerated harvesting as it contended with biological challenges brought by warmer seasonal temperatures.
SSC’s earnings before interest, taxes, depreciation, and amortization (EBITDA) in the last quarter exceeded GBP 6.7 million (USD 8.9 million, EUR 7.5 million), up from a loss of GBP 1.4 million (USD 1.9 million, EUR 1.6 million) a year previously.
Export sales in the period accounted for 48 percent of the value, compared to 42 percent in Q3 2016, as the company continued its focus on driving export growth and developing markets for its premium products. The increase was largely led by more salmon being exported to North America.
"Demand for Scottish salmon as a premium food continues and we will capitalize on this through market development and ongoing brand development built on our core competencies and heritage as already showcased by our Label Rouge and Native Hebridean brands," SSC CEO Craig Anderson said.
SSC is on target to harvest 25,000 MT in 2017 and has forecast a larger volume of 26,500 MT for 2018. It said the outlook for continued strong demand and limited global supply growth would pave the way for continued firm prices throughout the remainder of 2017 and into 2018.