Norcod sales up, but profits yet to emerge

Norwegian cod farmer Norcod has reported a solid jump in its third quarter revenues this year, along with good progress in other areas.

Sales were up from NOK 2m (£150,000) 12 months ago to NOK 21m (£1.55m) this time.

The company also saw heavy investment in its biomass to fortify its marker position along with the successful and complete integration of its operation at Kråkøy Slakteri and obtaining a new production site at Bjørnvika.

Profit remains elusive at the moment and the company reported a Q3 operating loss of NOK 28m or just over £2m

Lower than expected sales prices emerged at the start of the period which also had an effect.

Norcod said: “The acquisition process of the harvest facility Kråkøy Slakteri AS has been completed successfully. The successful vertical integration of Kråkøy is an important step to create a robust and streamlined business model.

“Key benefits accrue from the acquisition, such as priority facility access, cost reduction and operational efficiency, enhanced process control and exploration of value-added services. “

This move aligns with a long-term vision of higher customer satisfaction, cost savings and market expansion.

The report added: “The vertical integration of Kråkøy is an important step to create a robust and streamlined business model.

“Key benefits accrue from the acquisition, such as priority facility access, cost reduction and operational efficiency, enhanced process control and exploration of value-added services. “

“This move aligns with a long-term vision of higher customer satisfaction, cost savings and market expansion. Strong operational performance has characterized the third quarter of the year. Feed and fish performance has been on or above budgeted targets.”