Polish Seafood Processor Morpol ASA has increased sales in spite of difficult Market
Morpol's consolidated operating revenue in Q3 2012 amounted to EUR 107.5 million, which was higher by EUR 4.1 million in comparison to operating revenue generated in the same period last year, reports www.megafishnet.com with reference to Morpol ASA.
Operating EBIT for the quarter amounted to EUR 4.6 million (4.3 percent margin), which was EUR 11.5 million lower versus the same period last year.
The group's net interest bearing debt (NIBD) was EUR 146.8 million at the end of Q3 2012, EUR 25.9 million decrease compared to year end and EUR 6.6 million decrease compared to the end of Q3 2011. The equity ratio was 41.6 percent at quarter end compared to 44.1 percent at the quarter end prior year.
Operating revenue in processing in Q3 2012 was EUR 91.2 million compared to EUR 83.9 million prior year.
Sales volume increased in Q3 2012 by 25.8 percent overall compared to the same quarter in 2011. There was a strong, double digit sales volume growth in all product categories. However, as retailers continued to put pressure on prices, Morpol achieved lower prices for its main products compared to the same period last year and the previous quarter.
Operating EBIT for processing in Q3 2012 was EUR 5.7 million vs. EUR 14.0 million in the previous year and remained on the same level compared to Q2 2012. The operating EBIT margin in Q3 2012 decreased to 6.3 percent compared to 16.7 percent prior year. Raw material prices Q3 2012 were at similar levels to Q3 2011 but end sales prices have reduced significantly. Raw material purchase unit prices slightly decreased in Q3 2012 with an average NOS price from Norway of approximately NOK 25/kg, down by approximately NOK 2/kg from Q2 2012.
Revenue in salmon farming in Q3 2012 was EUR 28.6 million (EUR 29.0 million in same period last year). Of the total revenue, EUR 12.1 million was transferred internally for further processing and sales. Volumes sold were higher by 4.8 percent in comparison to the same period last year. However, revenue remained at the same level mainly due to a higher proportion of harvesting in Norway (salmon prices are generally lower in Norway versus Scotland).
Salmon farming operating EBIT in Q3 2012 was EUR 0.5 million (EUR 3.4 million same period last year), resulting in an operating EBIT margin of 1.7 percent (Q3 2011: 11.6 percent). The drop in operating EBIT was mainly due to additional costs related to challenges with Amoebic Gill Disease in the UK. The farming operation in the UK - Meridian Salmon Group - generated an operating EBIT of EUR 0.4 million. Sales volume in the quarter was 5,459 metric tonnes gutted fish equivalent returning an EBIT/kg of EUR 0.1/kg. The Norwegian farming operation -Jøkelfjord Laks - generated an operating EBIT of EUR 0.1 million, returning an EBIT/kg of EUR 0.1.
Comment from the CEO
"Morpol's growth continues", CEO Jerzy Malek says. "We expect demand to remain buoyant for our main products and for salmon as a whole, and as such will continue to pursue a strategy of profitable growth."