NRS hits record high despite disease outbreak
Norway Royal Salmon (NRS) has reported the highest annual and quarterly operating profits in its history, despite biological problems at a site in its southern region.
The company today reported an operational EBIT of NOK 232 million (£20.8m) and an EBIT per kilo of NOK 17.73 for Q4 2018. Those figures compare with NOK 95m and NOK 15.51 per kg in Q4 2017.
For the whole of 2018 NRS had an operational EBIT of NOK 642m (2017: NOK 627m) on revenues that topped NOK 5 billion.
“We are pleased that Region Nord still has a positive development in production costs, but biological challenges in Region South are reducing the result,” said chief executive Charles Høstlund.
Region Nord, where NRS has the bulk of its operations, achieved an operational EBIT in Q4 2018 of NOK 243.3m, compared with NOK 116m in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 20.20 compared with NOK 15.84 in the corresponding quarter last year.
Region South achieved an operational EBIT in Q4 2018 of NOK 1m, compared with NOK 24.4m in the same quarter last year. Operational EBIT per kg gutted weight was NOK 0.60 against NOK 14.12 in the corresponding quarter last year.
NRS pointed to high production costs in Region South due to the disease yersiniosis, which resulted in high mortality of large fish at one site. All smolt will be vaccinated for yersiniosis from 2019 and forward.
NRS harvested 13,783 tonnes gutted weight in Q4 2018, which is 52% higher than the corresponding quarter in 2017. The quarter’s harvest volume is divided by 12 042 tonnes in Region North and 1,741 tonnes in Region South.
Harvest volume for 2019 is expected to be 38,000 tonnes, an increase of 6% from 2018.