May 2023: Better prices and a normal summer have improved Salmones Camanchaca’s results

Atlantic salmon harvest volumes were 37% higher than in Q1 2022 with good productive performance. The 2022-2023 Coho salmon season ended with 5,856 MT WFE, in line with the company's plan for this species, which it aims to double during the 2023-2024 season.

Salmones Camanchaca published its financial results for the first quarter of 2023, with an increase in operating revenue of 41% to US$ 114 million, explained by higher sales volumes of Atlantic and Coho salmon in the period (up 12% and 122% respectively), and a 15% increase in the price of Atlantic salmon.

The average sales price of Atlantic salmon was US$ 7.80/kg WFE, which is attributable to limited supplies and better prices in the Company’s main markets, due to Salmones Camanchaca’s agile capability to change formats and markets and successfully capture sales opportunities.

Atlantic salmon harvest volumes were 37% higher than in Q1 2022 and with good productive performance, while the quarter’s Coho salmon harvest volumes concluded the 2022-2023 season with 5,856 MT, an increase of 134%, and these harvest volumes are expected to double in the following season.

Although harvest volumes were higher during the period, inflationary pressures on consumables and costs associated with marine risk mitigation kept costs high. The cost of harvested Atlantic salmon was US$ 4.27/kg ex-cage live weight in Q1 2023, which was 2% lower than in Q1 2022. Processing costs were US$ 1.24 /kg WFE, which were higher than the long-term target, but US$ 0.05 lower than the same period last year.

Salmones Camanchaca emphasized that there were milder marine conditions in southern Chile during the quarter. This factor, together with good performance from the geographical diversification strategy, and the HAB impact mitigation technology that has already been installed at 6 farming sites, all helped to keep the fish survival rate high.

Accordingly, the Company recorded an EBITDA of US$ 25.4 million in the first quarter, seven times the EBITDA for the first quarter of 2022, and net income after tax was US$ 7.9 million, which compares favorably with US$ 1.6 million in the same period last year.

“A normal summer without serious marine incidents kept the fish survival rate high, and supported by our strategy of reducing marine risks, we increased the Coho and Atlantic salmon harvest volumes, so combining this with strong world demand has given us a good start to the year,” said Ricardo García Holtz, vice-president of Salmones Camanchaca.

Smolt stocking has been completed and normal production parameters are expected. So Mr. Garcia forecasts that Atlantic salmon harvest volumes for 2023 will be between 44,000 and 46,000 MT WFE, while Coho salmon harvest volumes will between 10,000 and 12,000 MT WFE.