Salmones Camanchaca (SALMOCAM) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was reported at $104 million, down 11% year-over-year due to a planned 65% reduction in Coho sales, partially offset by higher Atlantic salmon volumes and prices; Atlantic salmon harvests increased 27% to 12,600 tons, with improved biological performance and higher average fish weights.

• EBITDA before fair value adjustments rose to $19.7 million from $4.3 million in Q1 2024, with EBIT per kilo for Atlantic salmon exceeding $1 and coho profitability turning positive.

• Net income reached $4.0 million, a turnaround from a $1.3 million loss in Q1 2024, driven by improved margins and lower costs.

• Net debt reduced by over 30% year-over-year to $87 million, with net debt/EBITDA ratio improving to 1.3x.

• Achieved 100% ASC certification for biomass and ended participation in the La Trucha joint venture.

Financial highlights

• Revenue fell 11% year-over-year to $104 million, mainly from a 65% drop in coho sales, while Atlantic salmon sales volume increased 6% and prices rose 3%.

• EBITDA grew more than fourfold year-over-year, mainly due to cost reductions and improved biological results.

• Net financial debt decreased 36% year-over-year to $87 million; net debt/EBITDA ratio improved to 1.3x.

• Operating cash flow was $13 million, supported by inventory liquidation and better margins.

• Processing cost per kilo for Atlantic salmon fell to $1.06 from $1.18.

Outlook and guidance

• Projecting to reach the upper end of harvest estimates for 2025, possibly 60,000 tons including 2,000–3,000 tons of coho.

• Plans for 10% annual growth in Atlantic salmon for both 2025 and 2026.

• Expecting lower financial expenses in coming quarters due to reduced debt and lower spreads.

• Anticipate normal seasonal price weakness in the second half of the year due to increased Chilean supply.

• Global Atlantic salmon supply projected to grow 6% in 2025; Chilean production expected to rise 7%.