Jellyfish are largely to blame for a dive in Huon Aquaculture's profits.
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Tasmanian-based Huon's net profit after tax slumped to $9.5 million in 2018-19 after totalling $26.4 million in the previous financial year.
Huon said the result was influenced by a drop in harvest volumes and higher operating costs carried over from the previous year.
"This was further exacerbated during the year by a jellyfish event which increased production costs and caused poor growth rates associated with the secondary health impacts of affected salmon, increasing per kilogram production costs," Huon said.
Moon jellyfish killed Huon salmon in the Huon River and D'Entrecasteaux Channel in late 2018.
Some fish later died from gill necrosis caused by the jellyfish stings, and the growth of others was affected.
Revenue dropped by 11 per cent to $282 million, and harvest tonnage fell by 18 per cent.
Huon's net debt increased by $57.5 million to $138.8 million, after capital expenditure of $64.3 million.
The company said there was good reason to be optimistic earnings would recover strongly in the current financial year, assuming there were no abnormal weather or biological events.
"Importantly, the completion of the second of two major efficiency and expansion programs has put in place a platform that will deliver a sustainable reduction in costs beyond financial year 2020," it said.
It said last financial year's strong pricing environment was expected to continue in the current year.