Marine Har­vest un­veils £44.5m cost cuts

Fish Farmer - - News -

MARINE Har­vest has an­nounced a cost cut­ting pro­gramme to­talling 50 mil­lion eu­ros (£44.5 mil­lion) de­spite re­port­ing strong fourth quar­ter earn­ings and the best an­nual prof­its yet for the group.

The world’s largest fish farmer achieved an EBIT (pre-tax profit) of

€ 181 mil­lion for the fourth quar­ter of 2017.

But for 2017 as a whole the op­er­a­tional EBIT was € 792 mil­lion, a record high. Turnover for the year to­talled € 3,654 mil­lion, an­other record.

The fourth quar­ter turnover or op­er­a­tional rev­enue was € 1,010 mil­lion (€1,018 mil­lion in Q4 2016).

The to­tal fourth quar­ter har­vest vol­ume was 112,628 tonnes (99,634 tonnes in 2016). The har­vest guid­ance for 2018 is 410,000 tonnes.

CEO Alf-Helge Aarskog said: ‘Global har­vest growth in the in­dus­try put pres­sure on the salmon prices in all mar­kets in the quar­ter. It is en­cour­ag­ing to see that the sup­ply is grow­ing, but the mar­ket needs time to adapt to the re­cov­ery af­ter the sig­nif­i­cant global sup­ply con­trac­tion in 2016.’

He added: ‘2017 was a great year for Marine Har­vest fi­nan­cially, and I am proud of the work all Marine Har­vest staff have put in to ac­com­plish this. How­ever, I am con­cerned about the ris­ing cost and the chal­leng­ing bi­ol­ogy. Hence, we have ini­ti­ated a global cost sav­ings pro­gramme with a tar­get of € 50 mil­lion sav­ings.’

Nor­we­gian salmon achieved € 1.77 (2.70) per kg, while salmon of Scot­tish and Cana­dian ori­gin re­ported

€ 1.19 and € 0.98 (€1.83 and € 3.33) and Chile re­ported

€ 1.03 (€2.61).

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.