DEMAND FOR SALMON STRONG, SAYS SSC

Demand for salmon strong, says SSC. The Scottish Salmon Company (SSC) has reported revenues for the third quarter at £39.4m – up £400,000 on the equivalent period in 2017, with harvest volumes increasing by 5%.

Key highlights were:

• Revenue for the third quarter 2018 was £39.4m (Q3 2017: £39.0m). Harvest volumes increased 5% to 7,091 tonnes (Q3 2017: 6,781 tonnes), while revenue per kilo decreased to £5.55/kg
  (Q3 2017: £5.76 /kg). Revenue per kilo was impacted by lower average harvest weight during the period.
• Costs/kg was £4.31 for the quarter (Q3 2017: £4.76/kg). SSC changed its accounting basis for mortalities from Q1 2018 to be in line with industry standards resulting in 2018 costs being transitionally lower by £0.24/kg year to date. Re-phasing harvests and lower mean weights also impacted on costs during the quarter.
• The underlying demand for Scottish salmon remains strong. Export volumes accounted for 51% of total sales during the period, up from 47% in Q3 2017.  SSC continues to develop overseas markets, particularly in North America and the Far East. Exports to markets outside Europe were lower in the third quarter than earlier in 2018 due to smaller harvest sizes.
• Good growth continues in the standing biomass. The annual tonnage target for 2018 is revised to 29,500 tonnes from the previously stated 28,000 tonnes.
• SSC achieved a two-star Best Aquaculture Practice (BAP) certification including marine sites and processing plants.
• SSC continues to develop its operational platform and acquired a hatchery and fresh-water site in the North of Scotland during November 2018 which will increase smolt production capacity by around 1.5 million, further developing its freshwater infrastructure.

Craig Anderson, Chief Executive Officer at The Scottish Salmon Company, said: “Historically, the third quarter has been the most challenging for The Scottish Salmon Company. However, whilst the third quarter this year has not been without issues, on balance it was a solid quarter. Overall biological performance has been good and we are increasing our harvest volume guidance for the full year to 29,500 tonnes.

“The demand for Scottish salmon remains strong. Based on our Scottish provenance we continue to develop and promote our brands and products and build long term relationships with customers. An effective operational platform is fundamental to our strategy, securing consistent sustainable production of high quality salmon with efficient flow throughout the value chain.

“We are pleased to further strengthen our operations with the addition of a freshwater facility in the North reflecting our focus on responsible business growth, improving operations, streamlining activities and increasing capacity.”