Salmones Camanchaca - Q2 2023 results
o Due to a scheduled reduction in the Company's harvesting plan, Atlantic
harvest and sales volume were down 48% and 42% in Q2 to 6,423 MT WFE and 6,793
MT WFE respectively.
o Despite salmon prices falling towards the end of the second quarter, the
average selling price of Atlantic salmon was USD 7.83/kg WFE, in line with Q2
2022, mainly due to Salmones Camanchaca's ability to capture short term market
opportunities through swift switch in formats and markets.
o Q2 sales volume of Coho Salmon were 1,254 MT, up 148% from Q2 2002. Total
volume for 2022-2023 season were 5,856 MT, more than doubling from the previous
season. Smolt stocking to date is expected to double harvest volumes for the
o Cost of harvested Atlantic salmon (ex-cage live weight) increased 23% to USD
4.98/kg, influenced by higher costs related to SRS outbreaks, sea lice presence,
in addition to sea lion attacks. High price levels for salmon feed ingredients
in late 2022 and early 2023, also affected costs.
o Atlantic salmon EBIT/kg WFE was negative USD 0.05 during Q2 2023, which
compares to positive USD 1.75/kg WFE in Q2 2022. Coho salmon EBIT/kg WFE was
positive USD 0.04, down from USD 1.56 in Q2 2022, due to increases in feed
costs, diseases, maladaptation incidents, inflationary pressures and a drop in
o EBITDA came in at USD 4.3 million in Q2 2023. EBITDA for the first half year
was USD 29.7 million, in line with H1 2022, with an EBITDA margin of 16.7%.
o A result of the scheduled volume reduction and higher costs, EBIT was down USD
21.5 million to USD -0.3 million in Q2 2023.
o Net cash amounted to USD 7.5 million as of June 30, 2023. In addition to
unused lines of credit of USD 46.6 million, the Company has USD 54.1 million of
o Net Debt over EBITDA ratio for the last 12 months was 1.27, well below the
limit required by lending contracts with banks of 4, and the ratio last year of
o Atlantic salmon harvest volumes for 2023 are expected to be between 45,000 and
47,000 MT WFE, while Coho salmon harvest volumes are expected to be 11,000 to
13,000 MT WFE
Santiago, 16 August 2023: Salmones Camanchaca harvested 6,423 MT WFE of Atlantic
salmon in Q2 2023, which was 48% less than the harvest volume in Q2 2022 at
12,446 MT WFE, a scheduled reduction in the Company's harvesting plan following
its risk mitigation strategy previously communicated. Sales volumes were 6,793
MT WFE, which were 42% lower than the same period in 2022. Sales volumes of Coho
salmon during the second quarter of 2023 were 1,254 MT WFE, which were 148%
higher than Q2 2022 at 506 MT WFE.
Despite salmon prices falling towards the end of the second quarter, the average
selling price of Atlantic salmon was USD 7.83/kg WFE, in line with Q2 2022,
mainly due to Salmones Camanchaca's ability to capture short term market
opportunities through swift switch in formats and markets.
The biological conversion ratio for Atlantic salmon continues to improve and
reached 1.08 in LTM 2023. As did the FIFO indicator, which was lower than its
long-term target and lower than the targets set by the Sustainability Linked
Loan. Smolt productivity is measured as biomass harvested/number of smolts
stocked and it improved to 4.6 kg WFE/smolt in 2023, which was 28% higher than
in 2022 and 5% higher than in 2021. Average closed-cycle harvest weight was 5.1
kg WFE, which was 16% higher than in 2022, but 5% lower than the previous cycle
Atlantic salmon ex-cage costs were USD 4.98/kg for the quarter, an increase of
23% compared to Q2 2022, influenced by the costs associated with SRS outbreaks
that affected two farming sites during harvest, sea lice presence, sea lion
attacks and feed costs.
With lower harvest volumes expected for the quarter, total processing cost were
USD 1.49/kg WFE, which were higher than the USD 0.99/kg WFE of Q2 2022, mainly
explained by inflation and an extraordinary compensation for collective
Extraordinary mortalities for the quarter were USD 0.8 million, compared to USD
0.6 million in Q2 2022, and were caused mainly due to freshwater alevin
elimination related to one less site to be stocked in the plan.
Quarterly expenses on fallow assets, such as non-biomass farming sites, were USD
5.5 million, compared to USD 2.1 million in Q2 2022. This increase was partially
explained by the scheduled 5-week shutdown of the value-added processing plant
in Tomé for major maintenance and planned improvements, which accounted for
about half of that cost.
EBIT before fair value adjustments for Q2 2023 was negative USD 0.3 million,
compared to positive USD 21.2 million in Q2 2022, which was due to lower sales
volumes for Atlantic salmon and higher costs. Thus, EBIT/kg WFE for Atlantic
salmon was negative USD 0.05/kg WFE for Q2 2023, compared to positive USD
1.75/kg WFE for Q2 2022. For Coho salmon, EBIT/kg WFE ended at USD 0.04, down
from USD 1.56 in Q2 2022, due to increases in feed costs, diseases,
maladaptation incidents, inflationary pressures and a drop in prices.
Commenting on the performance of Salmones Camanchaca, vice chairman Ricardo
"The results obtained in the second quarter are clearly weak, but they are
partially a reflection of strategic decisions taken to reduce environmental
risks in the X region fjords, increasing smolt stocking further south, and
improvements and maintenance in the processing plant that was closed for half of
the quarter. All this led to an extraordinary and non-recurring decrease in the
volume harvested, processed, and sold. For the second half of the year, we
expect to harvest more than two thirds of the annual volume, which we estimate
will be slightly higher in a range of 56 to 60 thousand MT, with close to 80%
being Atlantic salmon. In the first half of the year, we have an underlying
pressure of higher costs due to risk mitigation strategies, which is added to
inflationary pressures on input materials, to which is added in a particular way
this quarter, the lower volumes harvested and processed, and two specific health
situations that we trust will not be repeated in the rest of the year. And on
the price side, we had somewhat better prices than the previous year, and we see
that the low situation at the end of the second quarter has been recovered".
Salmones Camanchaca will present the second quarter 2023 results on Thursday, 17
August 2023 at 15:00 Central European Summer Time (CEST). The presentation will
be held on-line by Vice Chairman Ricardo García and CEO Manuel Arrigada.
To join the webcast, use the following link:
The presentation and subsequent Q&A session will be held in English. It will be
possible to ask questions online.
A recording of the webcast will be made available on the Investors section of
the companyŽs webpage.
For more information please contact:
Álvaro Marín, Head of IR [email protected]
Fernanda Peñailillo, IR [email protected]
Álvaro Morales, IR [email protected]
About Salmones Camanchaca
Salmones Camanchaca S.A. is a vertically integrated salmon producer engaged in
breeding, egg production, recirculating hatcheries for Atlantic salmon and
pass-through or lake hatcheries for Coho salmon, fish farming sites in estuary,
fjord and oceanic waters used mainly for Atlantic salmon, primary and secondary
processing, and marketing and sales of Atlantic and Coho salmon through five
sales offices in its main markets.
The Company's Atlantic and Coho salmon production target for 2023 is between
56,000 and 60,000 MT WFE and for 2024 between 60,000 and 65,000 MT WFE. Salmones
Camanchaca participates in trout farming through a one third share of a joint
venture, which uses Salmones Camanchaca farming sites in coastal-estuarine
waters, and currently plans to harvest an average of 9,000 MT WFE per year until
Salmones Camanchaca has 1,800 employees on average, 60% of whom work in its
value-added plant. The main Atlantic salmon sales markets are currently the USA
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
release was published by Fernanda Peñailillo, Investor Relations, Salmones
Camanchaca on 16 August 2023 at 23:30 CEST.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.