Chile salmon giant reports large revenue fall

Salmones Camanchaca, one of Chile’s largest salmon farming companies, has reported a 35% drop in its second quarter operating revenues.

Sales totalled US $63m (£49.5m) during the April to June period. The decline was mainly due to lower Atlantic salmon harvests.

They were down by 48% to 6,423 tonnes due to a scheduled reduction in the company’s harvesting plan following its previously communicated risk mitigation strategy. The first half Atlantic salmon harvest is 15% lower than a year ago, but is in line with expectations.

The company said Coho smolt stocking to date is expected to double harvest volumes for 2023-2024 season.

Operating revenue for the first half of the year was US $177.2 million (£139m), which is in line with the same period in the previous year.

The company said its Atlantic and Coho salmon production target for 2023 is between 56,000 and 60,000 tonnes (whole fish equivalent) and for 2024 between 60,000 and 65,000 tonnes (whole fish equivalent).

Due to the lower harvests, the EBITDA came in at US $4.3m (£3.38m) in Q2, for sales and margins. The EBITDA for the first half year was US $29.7m (£23.3m), in line with first six months of 2022, with an EBITDA margin of 16.7%.

The company said smolt stocking has been completed and normal production parameters are now expected.

“Therefore, Atlantic salmon harvest volumes for 2023 are expected to be between 45,000 and 47,000 tonnes, while Coho salmon harvest volumes are expected to be between 11,000 and 13,000 tonnes.

Salmones Camanchaca S.A. describes itself as a vertically integrated salmon producer engaged in breeding, egg production, recirculating hatcheries for Atlantic salmon and pass-through or lake hatcheries for Coho salmon.