Good first quarter for Russian Aquaculture. Russian Aquaculture PJSC, the largest Russian company in the commercial fish farming sector, has announced its unaudited consolidated IFRS financial results for the first quarter of 2021.
Key highlights include:
- Increased production volumes. Harvest volume and sales of finished product increased by 26% and 28% year-on-year, respectively.
- New fish farming areas. In January 2021, the Company signed an agreement for the use of a fish farming area in Pitkov Bay with a capacity of up to 10,000 tonnes per cycle. The Company won an auction in April and signed an agreement in May for a site in Kislaya Bay with a capacity of 7,000–10,000 tonnes per cycle.
- Ownership stake in processing plant increased to 100%. In May 2021, the Company exercised its options as part of agreements concluded in 2020 and acquired a 60% stake in Murmanrybprom LLC and Tri Ruchya LLC, bringing its ownership stake in its processing plant to 100%. The acquisition of this 60% stake cost RUB 355 million. The Company’s ownership of its own processing facilities guarantees the high-quality and timely processing of fresh fish, which opens up new opportunities to expand the range of Inarcticafinished product in the ultra-fresh category.
- Improved structure and duration of debt portfolio.
- High level of financial stability. Net debt decreased by 13% from 31 December 2020.
- In April, the Company’s processing plant underwent a successful audit for compliance with international MSC and ASC standards. The MSC standard provides for the conservation of the marine environment, the sustainability of fish stocks, and the efficient and sustainable management of fisheries, while the ASC standard aims to ensure the sustainable development of the aquaculture industry and a controlled impact on ecosystems. The Company received a certificate of compliance with halal standards.
- Expansion of the Board of Directors and arrival of new independent directors. Nine candidates were nominated to the Company’s Board of Directors, including six independent candidates (five of whom are new to the Company).
Key financial results in 1Q 2021
- Revenue increased by 12% year-on-year to RUB 3.9 billion.
- Gross profit before the revaluation of biological assets increased by 2% to RUB 1.5 billion.
- Adjusted EBITDA reached RUB 1.5 billion, down 7% from the previous year. Adjusted EBITDA margin was 39%.
- Net loss amounted to RUB 82 million, compared with RUB 335 million in 1Q 2020.
Russian Aquaculture CEO Ilya Sosnov said:
“We started the year on a strong note, achieving excellent results. We enjoyed considerable increases in the volume of harvest and of sales of finished product, received two new fish farming sites and completed a deal to increase our stake in our fish processing plant to 100%. The availability of proven primary processing facilities is an important link in our business model and another step towards the implementation of our strategy to create the largest vertically integrated player in the aquaculture sector.
“We continue to focus on issues that are important to all our stakeholders – from our more than thirteen thousand shareholders to the millions of consumers who buy our products, as well as our partners, Murmansk region and Karelia residents and society as a whole. Russian Aquaculture continues to improve its corporate governance, and to find ways to help society and support the environment through activities such as purchases of medical supplies for doctors and organising environmental initiatives.”
Photo credit: Russian Aquaculture PJSC