Leroy in confident mood after latest results Published: 19 August, 2011
Leroy Seafood has spoken of an “extremely positive” development after announcing its 2011 second quarter results yesterday.
The Norwegian owned salmon and seafood company has reported a turnover of 2,397-million Norwegian kroners ((265.5 million sterling) compared to 2,176 million kroners ( £241-million) for the same period in 2010. The board of directors said it was very satisfied with the group’s development and with the result achieved for the period, which is the highest second quarter result achieved in the history of the Group to date.The group’s operating profit before fair value adjustment of biomass was 440.3 -million kroners (48.7 million) in the second quarter of 2011, compared with 367.8 -million kroners (£40-million) in the second quarter of the previous year.
The strong increase in operating profit compared with the same period last year is as high as 19.7 per cent. This is explained by volume growth and improved prices for the Group’s main products, Atlantic salmon and salmon trout. The company said that as a result of the group’s long-term industrial market strategy, the prices achieved for salmon and salmon trout will naturally deviate from the spot market prices. On the back of falling spot prices, realised contract prices have been higher than prevailing spot prices in the quarter under review. The group’s share of contracts was 48 per cent in the second quarter of 2011 and will, based upon the current contract situation, be around 40 per cent for 2011 in total. Committed contract prices for 2011are higher than prevailing spot prices. This indicates that the group can also expect to achieve higher realised prices than current spot prices in the time ahead. As a result of considerably lower volumes, the associated company Norskott Havbruk (owner of the Scotland-based Scottish Sea Farms Ltd) achieved somewhat lower net earnings in the second quarter. Income from associated companies before fair value adjustment of biomass therefore declined from 29.3 million kroners (£3.2 million) in the second quarter of 2010 to 17.7 million kroners (£1.95-million) in the second quarter of 2011.