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SSC records Q3 revenue growth and profit

Siri Dybdal
Published Modified

Siri Elise Dybdal

In Q3 2012, SSC had a net operating revenue of £21.5m (£17.8m in 2011) achieved on sales volume of 6,607 tonnes (4,686 tonnes in 2011), showing a 'resolute' response to current industry-wide challenges.

The higher volumes recorded by SSC over Q3 2011 are the result of the imbalance in the company’s production However, Salmon spot prices have weakened and feed costs have continued to rise.

The incidence of Amoebic Gill Disease (AGD) and other biological challenges prevalent across Scottish salmon farming industry, and due partly to higher water temperatures and high levels of salinity, has led to increased mortalities, lower growth and increased production costs.

These issues associated with the biological challenges experienced in this quarter carry over into Q4 2012 and the weaker spot price of salmon and is expected to continue. But more normal biological performance is expected in the next generation of salmon to be harvested in the first half of 2013 from Loch Fyne. Harvest volumes in the second half of 2013 will however be impacted by the Q3 2012. Harvest volumes for 2013 have been revised to around 22,000 tonnes.

The company stated that it is focusing on developing its customer base, opening up new distribution channels and securing long term contracts.

With the introduction of Freedom Food reared salmon, SSC has now commenced supply to another top UK retailer; it has increased its sales volumes to French smokers and has expanded its distribution channels to Japan and China, whilst strengthening its domestic customer relationships.

The company was also granted a new consent in Gometra, Mull, progressing the company’s strategic plans to grow production volumes to 40,000 tonnes per annum. The new site will deliver up to 2,500 tonnes of salmon in 2014 and follows the successful application for another new site of similar size at Loch Torridon, in the North West Highlands, in Q2. With these sites now under development, the company expects to harvest 29,000 tonnes in 2014.

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