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Russian Seafood Producer PJSC Sees Profits Up In First Half

By Steve Wynne-Jones
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Russian Seafood Producer PJSC Sees Profits Up In First Half

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.

Rapid Response

"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.

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'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.

Long-Term Strategy

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.

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