Scottish Salmon Company reports ‘stable’ Q2 and first half results as exports rise

Announcing its latest results, the SSC also reported that its international strategy and focused export drive have seen export levels reaching 49 per cent for the first time, while the number of countries exported to has risen from 17 in 2013, to 24 today.

In Q2 2015 revenues were £31.2m (Q2 2014: £33.8m) on harvested volumes of 7,349 HOG tonnes (Q2 2014: 8,027 HOG tonnes). The results reflect the impact of unprecedented price volatility, fluctuating exchange rates, and lower harvest volumes.

Contract volumes remain steady and while spot prices were high at the start of the year, they fluctuated significantly in Q2. In addition to the expected seasonal price variance, increased volume available in the market had a negative effect on price.

In terms of exports, growth continued in more established markets such as Europe (Q2 2015: 38 per cent v Q2 2014: 35 per cent), while North America also shown a steady increase (Q2 2015: 5 per cent v Q2 2014: 3 per cent), and sales to emerging markets across the rest of the world have increased by a third compared to Q2 2014.

The Scottish Salmon Company’s ability to deliver high quality, premium salmon consistently year round is fundamental to this success and is the result of an ongoing capital investment programme to balance production, introduce husbandry improvements and continually develop all elements of the supply chain.

Craig Anderson, managing director at The Scottish Salmon Company, said: “In the face of challenging conditions, which are being felt across the wider industry, these results reflect a stable performance in the second quarter of 2015.

“With greatly increased supply, fluctuating prices, a strong pound, and biological challenges, Q2 proved to be a testing period, but our harvest volumes remain on a par with last year and we are confident about long-term future growth.

“Through a continued focus on building long term relationships with our customers, increasing harvest volumes, and developing investment in broodstock and infrastructure, we are confident our long term business plan will continue to build on our recent momentum.”

The Scottish Salmon Company also announced investment in two new sites at Scadabay and Reibinish in the North which are due to be stocked over the coming quater.

Plans are also progressing for a new processing facility in Argyll & Bute; and in North Uist the native Hebridean broodstock programme is taking a new approach to rear salmon with 100 per cent Scottish provenance – something which, in time, will provide a unique selling point to global markets.