Multiexport’s results start to improve
According to the salmon producer company, is important to note that EBITDA in the second half-year is positive in USD 1.5 million, while negative EBITDA for the whole year is explained due to the first half-year negative results.
Multiexport’s sales of salmonids totalized 5,248 tonnes of raw material (WFE) in 4Q 2009, which represents a 52,3% decrease compared to the same period in 2008 (11,003 tonnes). For the quarter, production was 5,996 tonnes (WFE), a 69.0% decrease versus the same period in 2008. In accumulated terms as of December 2009, production was 23,230 tonnes (WFE), a 59.6% decrease compared to the 57,504 tons produced in 2008.
The company's total income was USD 46.9 million in 4Q 2009 compared to USD 45.0 million in the same period of 2008, representing a 4.3% increase. In accumulated terms as of December 2009, production income amounted to USD 179.7 million compared to the USD 205.2 million within the same period of 2008.
In the fourth quarter the net loss was USD -3.7 million, which compares favourably to the USD -67.1 million losses from the same period in 2008, which was explained by mortalities, high cost and eliminations as a result of the sanitary situation of that year.
As of the fourth quarter of 2009, the accumulated net loss was USD -55.5 million, USD 52.4 million lower than the same period of the year before. This loss is mainly explained by: sales of frozen inventory products from sites affected by the ISA virus, which were harvested early and stored during 2008; algae bloom in march that affected a significant part of the inventory of live Atlantic salmon in the XI Region, which was recognized as a loss on non-operating income for mortality associated; and elimination accruals for freshwater breeding excess production (safety margins).
Income recorded as of December 31, 2009 totalled USD 179.7 million, which represents a decrease of 12.4% compared to the same period in 2008, when sales amounted to USD 205.2 million. The decrease in revenue is primarily due to: sales of frozen fish product from sites affected by the ISA virus during the year 2008 and January 2009, which had to be harvested early, with lower sizes so that their prices were lower too and; and lower production of raw material (harvest).
The operating result in the fourth quarter of 2009 showed a loss of USD -1.5 million, presenting a substantial improvement on the USD -55.3 million operational loss of the same period last year, with a positive USD 1.2 million production margin in the quarter. This constitutes an important change in the trend for the salmon business since the second quarter 2009. It should be emphasized that the above-mentioned operating income (EBIT) includes a provision of USD 2.42 million loss associated with the trout species (explained below), and a provision of USD 0.26 million loss associated with the sale of mussels in 2010, therefore, without considering the provision, EBIT associated with the sale and production of the fourth quarter would be positive for USD 1.2 million.
Administration expenses for the fourth quarter totalled USD -1.16 million, without major differences compared to the USD -1.19 million of the same period of 2008. In accumulated terms as of December 2009, administration expenses amount to USD -4.6 million compared to the USD -7.0 million of the same period of 2008.
Sales expenses for the quarter were USD -1.6 million, a 32.9% increase compared to USD -2.3 million. As of December 2009, accumulated and net of cold storage expenses were USD -3.8 million, a 23.4% decrease compared to the USD -5.0 million in the same period of 2008. Cold storage expenses for the year 2009 amounted to USD -6.5million compared to the USD -2.0 million recorded in the same period in 2008. The increase is explained by the bigger volume of product in storage from sites affected by the ISA virus which had to be harvested early from the second half of 2008 on.
The non-operating result for the fourth quarter of 2009 shows a USD -3.0 million loss, in contrast with the USD -25.7 million loss in the same period of 2008. In accumulated terms, the non-operational result shows a USD -26.0 million loss compared to the USD -53.7 million of the same period in 2008, which is due to: lack of massive extraordinary write-offs during 2009 (09/08 USD +9.4 million variation); USD -3.7 million losses for exchange rate differences; and higher financial expenses for USD 1.6 million from the higher level of average indebtedness.
As of December 2009, the company showed a net loss of USD -55.5 million (USD -3.7 million in the quarter) compared to the USD -107.9 million of the same period one year before due to the reasons explained in the preceding paragraphs.
