Seafood giant reports big increase in sales and profits – Fishupdate.com

Seafood giant reports big increase in sales and profits Published:  20 February, 2008

THE international seafood group Alfesca, which owns Farne Salmon in Scotland and Lyons Seafood in England, has just reported a record breaking near 32 per cent increase in net profits for the half year ended in December.

The results reflect a highly successful trading first half, which was widely expected following the release of buoyant Christmas trading figures by the Iceland based company a few weeks ago.

Turnover or sales for the half year shot up by 14.2 per cent to 396.1 million euros (around £304-million). Turnover for the second quarter period (October to December) rose by 11.5 per cent to 262.1-million euros (£201-million).

The net profit for the half year increased by 31.9 per cent to 23.3-million euros (almost £18-million) while earnings before interest, tax and depreciation (EBTIDA) for the period were up by 18.7 per cent to 45.4-million euros (£35-million).

The company said acquisitions had been integrated well, strengthening key pillars of the Alfesca business and increasing its market share. The company is a major supplier of salmon and shellfish products to UK supermarkets, especially over the festive period.

Alfesca Chief executive Xavier Govare said: “Our results for the all important second quarter and also the first half of our financial year were satisfactory and particularly encouraging for three reasons.

“First, the good results are significant as they were delivered over the most important period of Alfesca’s financial calendar due to the seasonality of our smoked salmon and foie gras sales favouring the second quarter period.

“Secondly, the solid results illustrate the relevance of our redefined strategy and focus based on four core pillars, each with its own cycle and specific risks. This recognition and organisation has a stabilising effect for the Group, as each pillar complements the other and has allowed for the smooth integration of the recent acquisitions.

“Thirdly, the increased activity and good results have been achieved in an exceptionally poor trading environment not experienced in recent times due to steep increases in commodity prices and reduced consumption over an unseasonably wet summer and Christmas period. The good results in each of our four pillars have been driven by our continued focus on innovation and increased competitiveness.”

But Mr Govare warned that the trading environment and market conditions for the rest of the 2008 calendar year would be very difficult.

“Whilst we progress with our plans to further strengthen Alfesca and increase shareholder value, our results demonstrate that Alfesca is well positioned and able to manage the adverse conditions,” he added.

“We are confident that Alfesca will continue to deliver satisfactory results in the second half of the financial year.”

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