MH Scotland’s volumes plummet 32%
Volumes
These caused harvest volumes in Q2 2015 to fall by 32% compared to the same quarter last year, dropping to 12,351 tonnes gutted weight, compared to 18,274 tonnes harvested during the corresponding period in 2014.
The losses have been blamed on AGD and lice treatments but may have been aggravated by another gill-related problem, known as PGD, which is caused by algal blooms and affected Scottish sites run by other companies towards the end of 2014, although MH Scotland have yet to explain the biological challenges in full.
Looking ahead, the company predicts 2015’s total harvest to be 52,000 tonnes - 4,000 tonnes lower than originally forecast for the year (largely due to the year's compoaratively cool seawater temperatures), but higher than the 49,000 tonnes harvested during 2014.
EBIT and prices
Operational EBIT in Q2 amounted £5.21 million in the second quarter (£17.36 million), at £0.42 per kg, compared to £0.95 per kg in last year’s Q2. The reduction in margin is a result of reduced prices, lower volume and increased costs, partly due to the challenges experienced in the fourth quarter of 2014.
The reference price in local currency was down by approximately 16% in the quarter compared to the second quarter of 2014 due to increased competition from Norwegian salmon as a result of the
strengthening of the GBP towards the NOK. The average exchange rate NOK/GBP for the second quarter of 2015 was 11.88, compared to 10.08 in the same period in 2014 (an increase of 18%).
The price premium achievement in the spot market was higher than in the second quarter of 2014, while the contract contribution improved, compared to the same period last year. The contract share was 45% in the quarter, compared to 44% last year. The superior share was 96% (96%). As a result of the above, the overall price achievement compared to the reference price was better than in the second quarter of 2014, but the absolute price achieved was still 6% below the price achieved in the second quarter last year mainly due to the reduction in the reference price in local currency.
