Seafood exporter Coast reports big jump in sales

Norwegian exporter Coast Seafood has reported a 14% increase in its turnover to NOK 6.4bn (£475m) for last year.

In January this year, it bought the Danish company Vega Salmon for an undisclosed sum and it is reported that part or all of Vega’s performance has been included in the accounts.

Vega Salmon produces around 25,000 tonnes of salmon a year and has an annual turnover equivalent to around £150m. The company sells fresh and frozen salmon, cold smoked, hot smoked and marinated salmon as well as value-added products and salmon off-cuts.

At the time of the acquisition, Coast Seafood CEO Sverre Søraa  said: “With Vega as part of the Coast family, we will be very well positioned to increase sales of processed salmon to the global market.”

With locations in at least three Norwegian centres, Coast exports fish to more than 400 mainly small and medium customers and 80 different markets around the world. These include around 50 fish farmers.

Its products include a wide variety of fish including salmon, trout, cod, haddock and pelagic species such as mackerel.

Operational profit or EBIT increased by almost 23% to NOK 111.8m (£8.7m). The operating margin was also higher.

CEO Søraa said the higher sales were making the company more cost effective adding that the industry was changing which will eventually lead more acquisitions.

The interaction between small and medium sized businesses would become even more necessary and Coast would continue to contribute with creative and innovative marketing for these businesses, Coast’s statement added.

Sverre Søraa, CEO Coast Seafood