Fish feed. (Photo Credit: Cermaq)

Ewos improves revenue despite challenging market

Leading feed and nutrition supplier for the aquaculture industry EWOS Group AS achieved 6.4 per cent underlying increase in revenues in the first quarter 2015 compared to the same period last year despite having flat volumes.

The Group informed that during the analysed period sales volumes were stable with 239,000 tonnes compared to 240,500 tonnes for the same period in 2014.

Sales volume increased significantly in Canada and Vietnam, while it was stable in Norway and decreased in Chile and Scotland.

The firm reported operating income increase by 20.3 per cent to NOK 2,700.8 million (USD 350.8 million) compared to NOK 2,244.1 million (USD 291.5 million) in the first quarter in 2014 driven by higher raw material prices and a weakening Norwegian kroner.

Adjusted EBITDA for the first three months in 2015 ended at NOK 173.2 million (USD 22.4 million), which represents an improvement from NOK 128.9 million (USD 16.7 million) in the same period last year. The increase in adjusted EBITDA was strongly affected by currency translation effect from the decline in the Norwegian kroner, but also supported by good product mix and cost containment.

The Group's operating results increased by NOK 29.0 million (USD 3.8 million), from a profit of NOK 21.2 million (USD 2.7 million) in the first quarter 2014 to a profit of NOK 50.2 million (USD 6.5 million) in the same period this year, which was primarily due to positive impact from currency translation effects from the stronger US dollar versus the Norwegian kroner, added to strong strong sales of performance and health feeds.

The Group’s sources explained that continued competition is expected for feed contracts in all the markets in which EWOS operates.

In Norway, the completion of Marine Harvest’s new feed factory has increased capacity in the market, leading to a more challenging competitive environment in the near term.

“In this environment, EWOS is focused on defending its historical share of the non-insourced market while delivering the most innovative feed solutions to customers,” pointed out the Group’s CEO Einar Wathne.

In addition, the Group’s CEO also explained that in Chile market conditions are also challenging for salmon farmers due to low prices on Chilean salmon and a stronger competition from Norwegian salmon caused by reduced demand from Russia and the strong USD compared to Norwegian Kroner.

“EWOS’s customers in Chile are facing financial constraints and are asking for longer credit on their feed payables. In some cases, EWOS is supporting customers with longer terms while mitigating this risk by increasing non-recourse factoring and credit insurance,” Wathne remarked. 

[email protected]
www.seafood.media

Address:	Tollbodallmenningen 1
City:	Bergen
State/ZIP:	(N-5803 )
Country:	Norway
Phone:	+47 55 69 70 00
Fax:	+47 55 69 70 01
E-Mail:	[email protected]
More about:

 

 

 

Print