The aggressive commitment by Aker Seafoods as a leading European seafood company is yielding results. Group operating revenues came to NOK 791 million in the first quarter 2008, compared to NOK 755 million in the same period the previous year. EBITDA was NOK 73 million as against NOK 96 million.
Underlying growth in Aker Seafoods is stronger than the interim accounts for the first quarter indicate. Fewer harvesting and production days as a result of the early Easter meant lower revenues and results in the first quarter 2008, while Easter affected the second quarter of the previous year. Typically, the company’s customers – the large grocery chains – reduce purchases at such public holidays and thereby lower revenues for the Aker Seafoods processing business.
Throughout the first quarter in 2008, Aker Seafoods’ position in Europe is further strengthened. The recently acquired Viviers de France is included in the company’s accounts as of 2008 and contributes to significant growth. Through this strategic acquisition, Aker Seafoods has ensured closeness to France and central Europe. These are major markets with a growing demand for seafood. Aker Seafoods is making a particular commitment to consumer-packed seafood in these markets, and its range includes whitefish, farmed cod, salmon and trout. Viviers de France started the producing new sushi products in 2007 and expects its sales of sushi to increase with over 50 percent.
– The possibilities are many in a constantly growing market in Europe. We are focusing on improving the product mix though the development of new products, and thereby have the opportunity to offer a broader choice in products as well as increased volumes. This week we have participated at the world’s largest seafood exhibition in Brussels, and have met with both current and potential customers. The feedback is promising and there is a large interest in sustainable fisheries as well as the dietary health benefits of seafood. Aker Seafoods has already entered into agreements to produce environmental branded saithe and expects to start its production in the second half of 2008. I’m excited about the company’s future, says CEO Yngve Myhre
Harvesting in the first quarter revealed good availability of cod, but the saithe fishery was rather more challenging than at the same time last year. The total catch for Aker Seafoods was 15 per cent lower during the first three months of the year than in with the first quarter of 2007. This primarily reflected lower volumes of saithe in the North Sea and above the 62nd parallel. The company expects to compensate for this volume later in 2008.
– We will continue to promote better regulations and increased quota flexibility. An increased flexibility will both strengthen the fleet and processing segment, as well as secure a better and more stable workplace for our employees, says Myhre.
The first-quarter accounts were affected by a strong Norwegian krone and high oil prices. The Norwegian krone was strengthened by 16 per cent against the US dollar and 15 per cent against the pound sterling from the first quarter of 2007, and by 27 per cent against the Icelandic krona. Although such exchange rate changes affect the prices in the market, the company is maintaining its goal of achieving just over NOK 3 billion in sales for 2008.
