Salmones Antártica recorded negative results in 3Q 2012
According to the most recently published quarterly report of Nissui, the marine products division of the company in South America achieved a negative operating income in 3Q 2012 of ¥ -2,400 million (US$ -25.47 million), which represents an almost 200 percent decrease compared to the same quarter of 2011 (¥ 2,500 million or US$ 26.53 million). The South American subsidiaries of Nissui are Salmones Antártica and the fishing companies Pespasa, Pesantar and DOSA Group.
Likewise, the operating income of Salmones Antártica was of ¥ -1,100 million in 3Q 2012 (US$ -11,67 million) representing a 130 percent decrease compared to the ¥ 3,700 million (US$ 39,27 million) achieved by the company in the same quarter of the previous year.
According to Nissui, while sales volume rose in Chile’s salmon/trout aquaculture business, the price of trout, which is the mainstay product, plummeted due to the effect of the price collapse of Chilean Coho salmon for the Japanese market stemming from its oversupply.
Among other measures for the second half of 2012 in the salmon producing division, Nissui reported that having cleared the inventory of Chilean Coho salmon, Russian red salmon, etc., whose inventory prices did not match market prices, gross margin will be on an uptrend in the second half of the fiscal year and thereafter. Moreover, expansion of sales will be sought with respect to highly profitable Russian red salmon and Nissui Thailand’s processed products. In the upcoming full-fledged shipment season for Chilean Coho salmon, appropriate inventory volume and price levels will continue to be maintained in the future.
Regarding the situation in 3Q, Nissui posted that the salmon/trout price stopped declining and the gross margin made a rapid recovery. "Sales of Russian Sockeye Salmon and Chilean Coho Salmon secured a profit," the report says.
Salmones Antártica is among the ten largest salmon producing companies in Chile with sales of US$ 124.79 million as of November 2012.
