The Tasmanian-based salmon producer and processor’s statutory net profit after tax fell by 37 per cent to $26.4 million in 2017-18.

Chairman Neil Kearney said the “volatile nature” of the statutory profit was due to accounting regulations relating to biological assets.

“As at June 30, 2018, this value declined by $18.6 million as a result of reduced biomass compared to the previous comparable period,” he said in Huon’s  annual report.

“We are confident, however, that the underlying earnings generated by the business will continue to grow and deliver the cashflows needed to expand production and pay dividends to our shareholders.

“We are always mindful though that Huon, in common with all aquaculture businesses, is subject to the changeable nature of local and international growing conditions.”

Huon’s operating earnings before interest, tax, depreciation and amortisation increased by $9 million to $71.8 million.

Mr Kearney said that was due largely to a strong increase in production and continued focus on managing costs.

Managing director and chief executive Peter Bender said this financial year had started with a lower biomass than originally projected, due to difficult growing conditions last financial year.

“Particular opportunities in overseas markets have assumed greater attention in the past year as Huon has taken advantage of the strong demand for its brand in Asia,” Mr Bender said.

“While this strategy remains, Huon expects to continue supplying only its longstanding customers in the Japanese market during financial year 2019 as it is forced to ration the reduced stock available.

“Increased volumes into the Asian market are expected late in financial year 2019.”

He said production levels would remain low in Macquarie Harbour, but production expansion would continue at Huon’s Storm Bay offshore sites.

                                 - SEAN FORD