Tasmanian salmon producer Huon Aquaculture has notched a record profit after what it called excellent growing conditions.
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Huon reported statutory net profit after tax of $42.2 million for 2016-17, which was up from just $3.4 million in the previous year.
Operating net profit after tax was up from $4.4 million to $28.8 million.
The company declared its first dividend since listing in 2014 (5c per share).
“Excellent growing conditions combined with the introduction of improved feed underpinned a better than expected fish growth turnaround from the previous year,” Huon said.
“Operating earnings before interest, tax, depreciation and amortisation increased 138 per cent (to $62.8 million) due to stronger prices, a more balanced channel mix and improving costs.”
The performance meant both sometimes testy year which included controversy around Tassal’s environmental compliance at Macquarie Harbour and future salmon growing sites and methods, plus differences between the two companies.
Huon achieved its result despite a 10 per cent fall in tonnage sold due to less biomass at the start of the year because it brought forward the 2015-16 harvest.
It said its 11 per cent increase in sales revenue to $259.5 million reflected continued strength in salmon prices through the year.
It increased the proportion of its sales into the retail market from 10 per cent to 22 per cent, in revenue terms.
“We have emerged stronger than ever, which I believe is in no small part due to the significant investment that has been made in the business over the past three years,” chief executive Peter Bender said.
“The controlled growth strategy was designed to not only provide a platform for future growth, but to also ensure we built a resilient and sustainable business.”
Huon expected similar prices this financial year to those paid in 2016-17, and was forecasting higher export sales because of a significant increase in production tonnage.
It expected the controlled growth strategy spending would bring substantial operating efficiencies, and was confident 2017-18 would “continue to provide improved profitability”.