Seafood producer PJSC Russian Aquaculture has posted a 2% increase in operating profit in the first half of its financial year, while revenue was up 8% to RUB 5.25 billion.
The group said that it faced 'two serious challenges' in the first half – market disruptions due to the coronavirus, as well as 'unfavourable' climactic conditions – but still managed to put in a solid performance.
"Thanks to dedicated teamwork and a rapid response to changes in the market, [...] we delivered strong operating results, maintained business stability and demonstrated solid growth in revenue, adjusted EBITDA and cash flow," commented chief executive Ilya Sosnov.
Sales volumes were up 2% in the first half, with the group saying that its 'strategic advantages' in terms of freshness, quality and proximity to sales markets worked in its favour.
The company posted a net loss of RUB 402 million in the period, however, due to the revaluation of biological assets – low water temperatures hindered fish developments in the first half, it said.
'That said, July and August were favourable in terms of temperature conditions, which resulted in strong fish growth, thus partially offsetting the earlier lag,' it noted.
Looking ahead, Sosnov added that the company will "continue to pursue our long-term strategy to create one of the world’s largest vertically integrated players in the aquaculture segment".
PJSC Russian Aquaculture is a large-scale producer of Atlantic salmon and sea trout in the Barents Sea in the Murmansk region, as well as a major trout farmer in the Republic of Karelia.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.