Villa Organic AS – third quarter 2010
Highlights - Third quarter 2010
Villa increased the profit in the third quarter. The EBIT was MNOK 26,9 and net profit before tax MNOK 20,2. Ebit pr kilo was NOK 7,45, reports http://www.megafishnet.com/ with reference to Villa Organic AS.
Harvest volume in Finnmark was 3.607 tons. There was no harvesting in the More region.
Growth in Biomass has been lower than expected due to lower sea temperatures. Sea temperatures in East Finnmark have been about 1 C lower than last year.
Despite the lower temperature in east Finnmark Villa is maintaining it's overall harvesting estimate for 2010 at 11 000 tons (4 000 tons in Q4).
Higher mortality at one site in July due to BKD and CMS virus caused higher production cost on fish harvested in July.
Villa's build up process of the company in Finnmark continued with full force.
A total 54 MNOK was invested mainly in new farming facilities to increase the production and is according to the growth plan.
Villa Group has entered into an agreement with Billund Akva to build a smolt recirculation plant in connection with the Villa group's facility in Moltustranda.
The plant will be completed in mid-January 2011. After completion the plant will have a capacity of 3 million smolts per year Villa has the sea lice situation well under control through the use of wrass, in the Møre region. In the Finnmark the sea lice challenge is limited.
In August a capital expansion towards employees was carried out successfully.
The aim was to raise NOK 6,75mill, and the issue was oversubscribed. The capital of the company has after the share issue increased to NOK 118.330.020 with a total of 118.330.020 shares.
Financial key figures
The operating revenue in Q3 was MNOK 131,4 million. EBITDA for the period was MNOK 34,3. The EBIT was MNOK 26,9.
The company is not adjusting the biological assets according to the IFRS accounting principles.
The equity ratio at the end of third quarter is 36%.
As sea temperatures in Finnmark have been lower than prognosis, production and growth during the quarter has been lower than expected. The quality of smolt from some shipment was not according to requirements and as agreed.
The biomass per September was 8.960 tons, of which 1214 tons was the 2008 generation, 6.753 tons was the 2009 generation and 909 tons 2010 generation.
The biomass in More reached 1.561 tons, of which 1.302 tons was the 2009 generation and 259 tons 2010 generation.
Harvested volume (HOG) in Q4 is expected to be 4 000 tons.
Sales and Market Outlook
The market has been strong during the quarter, and contracted prices for Q4 reflects the recent market prices.
The company therefore expects prices to be solid for our products in 2010.