BLUMAR ADVANCES ITS SUSTAINABILITY CREDENTIALS

Blumar advances its sustainability credentials. Chilean fishing and salmon company Blumar has launched its first Integrated Report, in which it communicated the advances in sustainability matters and the financial results of 2021. This is the first time that the company brings together both issues in a single document, evidencing the commitment made by the company to put this matter at the centre of the business strategy.

Regarding financial results, during 2021 they totalled USD 626.4 million in operating income, which represents a significant increase in both segments in relation to 2020. This increase was generated by higher sales in fishing, +17%, and in salmon, +49%.

The Chairman of the Blumar Board of Directors, Rodrigo Sarquis, stated that:

“2021 showed that for Blumar not only financial results are important, but also the way in which it manages to generate value. Behind that, there is the ability of thousands of people united under a common goal -our collaborators- to produce food for the world, in a sustainable and efficient way”.

The fishing and salmon company highlighted the great progress it has made in sustainability, after subscribing in 2020 various goals in this area voluntarily, within the framework of the syndicated loan with the Sustainability Linked Loan methodology, which made it the first company of the sector to sign an agreement of this type. Its objectives are to reduce the carbon footprint, reduce the use of antibiotics, increase Aquaculture Stewardship Council (ASC) certifications for salmon, waste management and the use of renewable energies.

Among its achievements is the start-up of the contract that will allow Blumar to supply itself with clean electricity, from 100% non-conventional renewable sources, which will translate into a significant reduction in the carbon footprint.

In addition, the company was able to reduce the use of antibiotics in salmon farming by 57% during 2021 compared to the base year 2017. This is a relevant advance within the framework of the goal committed by the company to reduce by 58% its use by 2027. Along with this, 100% of the facilities obtained the carbon footprint quantification seal of the Huella Chile Programme, including salmon farming centres in the Aysén and Magallanes regions for the first time.

On the other hand, Blumar defined a strategy with the intention of increasing the management and recovery of waste so that, in 2027, 80% of these are recovered in a circular economy scheme. In relation to ASC certifications, the company achieved 59% certification in salmon farming centres, exceeding the established objective by 40% for that period.

The general manager of the company, Gerardo Balbontín, stated that:

“everything we have stated in this Integrated Report demonstrates our company’s commitment to sustainability and to people. It is the teams located from Caldera to Magallanes that make it possible for us to be at the forefront in these matters. We still have many challenges ahead of us, but also the conviction that we are on the right path to face the future”.

35% increase in sales

In financial matters, Blumar showed an increase of USD 97.6 million in EBITDA and USD 100.2 million in net income compared to 2020. “2021 was a very positive year for the company. We achieved a sustained improvement in the financial indicators due to the different conditions and the management carried out by the company. During the past year we were able to resume a path of growth and fulfill all our commitments, as a result of the global economic reactivation and the demand in our main markets”, explained the general manager of Blumar, Gerardo Balbontín.

In the case of fishing, revenues and EBITDA increased by 17% and 36%, respectively, which is explained by the higher sales volume of frozen horse mackerel and by an increase in product prices and also influenced this result, the recognition of the sale of its participation in Frigorífico Pacífico.

Meanwhile, in aquaculture, it was observed that during the year there was a strong recovery in demand in their main markets, which resulted in a significant price increase of 38% compared to the 2020 average. The foregoing allowed us to go from an EBITDA of USD -47.1 million to USD 32.7 million.

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