The company told that the major loss was the result of lower salmon prices, higher costs in farming in Chile, and higher raw material costs in EWOS. Cermaq CEO Geir Isaksen informed that the prices of salmon were lower in all markets in the first quarter, but the company’s most important challenge remains production developments in Chile. As costs in Chile were high due to disease and slower growth the company’s highest priority is improving production conditions in the region.
According to the Mainstream Group a first quarter EBIT pre fair value loss of NOK -15.9 million compared to a profit of NOK 181.4 million in the first quarter 2007. It is said that the volumes were up 19 per cent, with the biggest increase in Norway. Average farming revenues in local currency were 12 per cent lower than in the first quarter 2007.
The company confirmed that the prices for Mainstream Canada were lower due to high volumes from the Chilean industry. Mainstream Scotland saw low sales prices in the quarter, and although costs for atlantics improved trout performance remained poor. The volumes of Mainstream Norway had increased by almost 60 percent for the period but profitability fell due to lower prices.
It is reported that the EWOS Group achieved an EBIT of NOK 1.2 million in the first quarter 2008, compared to NOK 53.4 million in the first quarter 2007. Volumes were 3.5 per cent higher in the quarter. The company told that the profit for first quarter slashed compared to the first quarter 2007 following sharp rises in raw material costs, particularly for fish oils and vegetable oils. EWOS market share was in the same range as for the same period in 2007.
Geir Isaksen opined that the first quarter 2008 was much weaker than we would like. But the company has a strong belief that it will solve the sanitary issues in Chile and bring this industry back at a profitable level.
