Promising start for Russian salmon

The group, which is also a leading distributor of chilled and frozen fish, announced that aquaculture had played a crucial role in the strong financial performance during the first nine months of the year.

The group’s first 3000 tons of Atlantic salmon raised in the Barents Sea were harvested and sold during Q3 2014 and, overall, the aquaculture segment contributed 35% of their operating EBITDA.

During the first 9 months of 2014 the Group harvested and sold about 3700 tons of fish, including: 3,022 tons of chilled Atlantic salmon harvested and sold during the period from June to September 2014; 613 tons of chilled trout and 29 tons of trout roe.

The segment revenue amounted to RUR 1,015 million for the first 9 months of 2014 vs RUR 42 million for the same period of 2013.

Operating EBITDA of aquaculture segment amounted to RUR 238 million, operating EBITDA margin constituted 23.4%.

In Q3 2014, 2 new salmon farms were launched in the Barents Sea and 3.3 million smolt were released into seawater. The Group plans to harvest and sell this fish from Q4 2015 through Q3 2016 in the total weight of not less than 12 thousand tonnes.

In Q4 2014, more than 1000 tonnes of Atlantic salmon from the second farm of the Group in the Barents Sea are planned to be harvested. The second salmon farm of the Group is planned to be harvested from Q4 2014 through Q3 2015, the total weight of fish from those farm is estimated at not less than 6 thousand tons.

In Q4 2014, the Group also plans to start harvesting of trout on farms located in the Republic of Karelia. The Group will eventually increase production volume of trout roe, which will significantly improve profitability of trout farming in the Republic of Karelia. 

Commenting on the achieved results and priorities, Russian Sea Group CEO, Dmitry Dangauer said: “Today we are presenting unaudited financial results of the Group for the 9 months of 2014. Currently, we see a very important stage of Russian Sea Group development. The Group strategic  focus on aquaculture business has been confirmed by the first sound results of the aquaculture segment, this year objectives were achieved, the Group has managed to cope with worsening economic conditions and import restrictions."

He added: “Looking ahead to next year, I can definitely say that the Group will continue investing in aquaculture segment in order to increase the supply of locally produced Atlantic salmon and its share in the Russian salmon market, and in order to offer consumers fresh, healthy and high quality locally produced Atlantic salmon and trout.”