Salmones Camanchaca (SALMOCAM) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating revenue rose 49% year-over-year to $94.5 million, driven by an 81% increase in Atlantic salmon harvest volume and an 80% increase in Coho sales volume, despite a 10% price decline for Atlantic and 25% for Coho.

• EBITDA increased to $14.7 million from $4.3 million in Q2 2023, supported by higher volumes, non-recurrent operational contracts, and cost efficiencies.

• Net profit reached $7.2 million, reversing a $1.9 million loss in Q2 2023, aided by improved operational performance and a positive fair value adjustment.

• Biological indicators, including mortality and feed conversion, were better than industry averages, with no extraordinary mortalities or major subsequent events reported.

• Announced delisting from the Oslo Stock Exchange, with execution expected by year-end 2024.

Financial highlights

• Q2 2024 revenue was $94.5 million (+49% YoY), mainly from higher Atlantic and Coho volumes, offsetting price declines.

• EBITDA rose to $14.7 million, with gains from higher volumes, non-recurrent contract effects, and cost reductions.

• EBIT improved to $9.5 million from -$0.3 million YoY; net profit at $7.2 million versus a $1.9 million loss in Q2 2023.

• Positive fair value adjustment of $6.7 million, reflecting higher expected harvest margins.

• Operating cash flow was $24.1 million; net financial debt at $118 million, with net debt/EBITDA LTM at 5.18.

Outlook and guidance

• 2024 harvest guidance: 46,000–48,000 MT Atlantic, 4,000–5,000 MT Coho; total 50,000–53,000 MT.

• 2025 harvest guidance: 55,000–57,000 MT Atlantic, 3,000–4,000 MT Coho; total 58,000–61,000 MT.

• Expectation of improved U.S. demand and seafood prices in 2025 as inflationary pressures ease.

• Chilean Atlantic supply expected to decline 12% in H1 and 2% in H2 2024; global supply to grow 1% in 2024.

• Trout JV financial impact to end by H1 2025 or as inventories are sold.