Scottish Salmon Company hails record £111m turnover amid rising costs

The Scottish Salmon Company has unveiled record halfyear revenues despite operational challenges in a tough second quarter.

The Edinburgh-based salmon producer, which operates around 60 sites across the west coast and the Hebrides, posted sales of £111.8 million in the six months to 30 June. It pointed to surging harvest volumes, which rose by 17 per cent, and reiterated its full-year volume guidance of 33,000 tonnes, up from 30,000 in 2018.

This came against a backdrop of rising operating costs, which climbed from £60.7m to £80.6m, while performance in the second quarter was knocked by “biological and environmental challenges”, including exceptional net mortality costs of £3m from two separate events.

Earnings before interest and taxes dropped to £31.4m, from £33.2m in the previous year. Exports remained a key driver of revenues, jumping 8 per cent to account for 67 per cent of sales.

SSC, a subsidiary of Jerseyregistered The Scottish Salmon Company plc, which is listed on the Oslo stock exchange, declared a dividend of 0.57 Norwegian krone (5p) per share.

Chief executive Craig Anderson said: “We delivered record revenues of £111.8m, despite a softening in market conditions and contending with localised operational and biological events that impacted production in Q2.

“Over the long term, the aim remains to deliver steady and sustainable growth.

“We remain on track to achieve our target volume of 33,000 tonnes by the yearend and 45,000 tonnes by 2025 with planning consent being obtained for two sites.”

He added that increasing global market share remained a priority, as demand for Scottish salmon continues to rise.