Salmones Camanchaca (SALMOCAM) Q3 2024 earnings summary

Executive summary

• Q3 2024 EBITDA reached USD 9.2 million, tripling Q3 2023, driven by lower production costs and strong biological performance in Atlantic salmon farms.

• Net profit after taxes was USD 4.1 million, reversing a USD 5.5 million net loss in Q3 2023.

• Operating revenues declined 12% year-over-year to USD 72.4 million due to lower Atlantic volumes and prices.

• Operating cash flow improved to USD 10.6 million from negative USD 28.6 million in Q3 2023, reflecting better working capital management.

• Biological indicators and sanitary conditions outperformed industry averages, supporting cost reductions.

Financial highlights

• EBITDA increased by USD 6.3 million to USD 9.2 million, mainly due to inventory provision reversal and lower COGS.

• EBIT before fair value adjustments was USD 3.5 million in Q3 2024, up from a loss of USD 1.9 million in Q3 2023.

• Fair value of biological assets increased by USD 6.2 million, reflecting improved margin expectations.

• Net financial debt reduced to USD 115 million as of September 2024, with Net Debt/EBITDA at 3.95x.

• Total finished product cost for Atlantic salmon decreased by 9% year-over-year to USD 5.5/kg WFE.

Outlook and guidance

• 2024 harvest guidance: 47,000–49,000 MT WFE Atlantic, 4,000–5,000 MT WFE Coho; 2025: 52,000–54,000 MT WFE Atlantic, 3,000–4,000 MT WFE Coho.

• Coho stocking limited to a single site in 2024 and 2025 due to weak demand and higher supply.

• Global Atlantic salmon supply expected to grow 1% in 2024; Chilean production projected to drop 7–9%.

• Q4 2024 expected to see higher activity in both harvest and sales volume.