Q1 2024 results
Ricardo García, Vice Chairman Manuel Arriagada, CEO
16 May 2024 - Santiago, Chile
Agenda
Highlights
Operational review
Markets
Financial review
Estimates
Summary
Q1 2024 Highlights
- Patagonia's oceanographic summer condition was more favorable than expected under El Niño cycle, but higher radiation depressed biomass.
- Operating Revenues up 3% at USD 117m: volumes sold up 24% but prices declined 19%.
- Atlantic harvest at 9.9k MT WFE down 11% YoY affected by lower harvest weights as biomass' appetite was depressed.
- Inventories reduced 45% QoQ, and 3k MT WFE were kept at 31st March.
- EBITDA at USD 4.3m, down from USD 25.4m in Q1 23, Decline of USD 21.1m explained by,
- USD 12.2m negative due to lower Atlantic prices.
- USD 6.7m negative due to lower Coho price and higher processing cost.
- USD 6.6m negative due to higher ex-cage cost of Atlantic (COGS).
- USD 3.6m positive as provision on inventories were reversed vis a vis Q4 23.
- All species EBIT/kg WFE sold was -20 cents: +19 cents in Atlantic & -102 cents in Coho.
- Atlantic LW cost of USD 4.91/Kg, up 64 cents from Q1 23: Low average weight in all 4 harvested sites and low oxygen levels and sea lice in an underperforming sea-farm (24% of the harvested biomass).
- Despite higher ex-cage cost, very low mortalities in Q1 (~0.5% monthly), and biology indicators were improved outperforming the industry.
- 2024 harvest estimates (MT WFE): Atlantic 44k to 46k; Coho 4k to 5k. Total close to 50k.
3
Financial Highlights
Revenues
Million USD
113.8 | 117.1 | |||
94.6 | ||||
82.1 | ||||
63.4 | ||||
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 |
EBITDA and EBIT/kg WFE
USD million and USD/kg WFE
1.50
25.4 | |||
0.02 | 0.12 | -0.20 | |
-0.03 | |||
4.3 | 4.3 | ||
2.9 | |||
0.9 | |||
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | ||
EBITDA | EBIT/Kg | |||||
4 | EBIT/Kg calculation presented by Salmones Camanchaca as a profitability indicator of the units actually sold and shipped to final buyers/customers, therefore excludes any provision made on inventories. |
Harvest & Stockings Growth in 2024
Atlantic harvest
Thousand MT WFE
- Lower Atlantic harvest in Q1 24 due to lower harvest weight (-11% vs Q1 23).
- Total stocking for 2024e are in line with 2023, but with more Atl. and fewer Coho.
-
Atlantic 2024 harvest plan at
44-46k & 4-5k for Coho (MT WFE). - Chile Atlantic stocking in Q1 24 increased 3%, and Coho declined 1% (*).
Atlantic Harvest volume
(1,000 MT)
Atlantic Smolt Stocking
(millions units)
Coho Harvest volume
(1,000 MT)
Coho Smolt Stocking
(millions units)
Total Stocking
(millions units)
17.8 | |||||||||||||||
15.0 | 14.3 | ||||||||||||||
13-14 | |||||||||||||||
12.4 | 11.1 | 11.5-12 | 10-10.5 | ||||||||||||
9.2 | 9.5 | 9.7 | 9.9 | ||||||||||||
8.1 | 8.8 | ||||||||||||||
6.4 | 6.4 | ||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
2021 | 2022 | 2023 | 2024 | ||||||||||||
40.1 | 44.5 | 44.1 | 44 - 46 | ||||||||||||
10.1 | 9.8 | 10.7 | 12 - 13 | ||||||||||||
1.8 | 4.0 | 11.4 | 4 - 5 | ||||||||||||
0.6 | 1.6 | 2.8 | 0.8 | ||||||||||||
10.7 | 11.4 | 13.5 | 13 - 14 |
5 * Source: Aquabench March 2024
Operational review
Atlantic biology: favorable relative performance
Mortality rateSC vs Industry indicators
SC vs Industry (ex-SC) | (closed groups as of March 2024) |
1.56%
1.33% | |||||||
0.95% | 0.96% | 1.00% | |||||
0.84% | 0.80% | 0.86% | 0.86% | ||||
0.77% | |||||||
0.76% | |||||||
0.70% | |||||||
0.82% | 0.81% | 0.84% | 0.84% | 0.82% | |||
0.78% | 0.77% | ||||||
0.65% | 0.64% | 0.70% | |||||
0.47% | |||||||
0.38% |
Apr-23May-23Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23Jan-24Feb-24Mar-24
Salmones Camanchaca | Industry (without SC) | |
7 Source: Aquabench March 2024
Indicator | Industry | SC |
average | ||
Mortality (%) | 12.9% | 5.0% |
FCRe acum (WFE) | 1.33 | 1.21 |
SGR (Specific Growth rate) | 0.72 | 0.84 |
Length of cycle (months) | 14.0 | 12.3 |
Grs antibiotic/MT produced | 469 | 248 |
Average harvest weight (Kg) | 4.9 | 4.3 |
Atlantic farming cost
Atlantic salmon LW ex-cage cost
(USD/kg)
4.92 | 4.98 | 4.69 | 4.91 | ||||
4.55 | |||||||
4.36 | 4.27 | ||||||
4.18 | 4.05 | 4.17 | |||||
3.91 | 3.95 | 3.91 | |||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | ||||||
2021 | 2022 | 2023 | 2024 | |||||||||||||||
Feed | OPEX | Smolt | Labor | Fish health | Other | |||||||||||||
8
-
Q1 24 LW cost at USD 4.91/kg, higher 64 cents vs
Q1 23: - +26 cents: Low harvest weight
- +9 cents: Mitigation measures for bloom/oxygen risks in "other expenses"
- +14 cents: "Fish health" due to sea lice outbreak in one sea-farm (24% harvested biomass)
- +15 cents: Inflation and extra services to the sites in OPEX
- Feed cost and smolts were unchanged
Atlantic finished product: all-in cost
- Total cost at USD 6.46/Kg WFE, up 11% vs Q1 23.
- Processing cost at USD 1.18/Kg WFE (-5%), driven by no outsourced processing, exchange rate devaluation (17%) and processing efficiencies.
Atlantic Finished Product Cost
(USD/kg WFE)
6.73 | 6.85 | 6.46 | |||||||
5.97 | 5.83 | 6.02 | 5.99 | ||||||
1.44 | 5.53 | 5.51 | 5.47 | 1.49 | |||||
5.40 | 5.35 | 1.18 | |||||||
5.15 | 1.29 | 1.24 | 0.98 | 1.10 | |||||
1.04 | 1.03 | ||||||||
0.99 | 1.26 | ||||||||
1.20 | |||||||||
0.91 | |||||||||
5.29 | 4.68 | 4.59 | 5.36 | 5.04 | 4.89 | 5.28 | |||||
4.20 | 4.49 | 4.24 | 4.36 | 4.49 | 4.21 | ||||||
9
Q1
Q2 | Q3 |
2021
Q4
Q1 | Q2 | Q3 |
2022
Ex-cage cost
Q4 | Q1 | Q2 | Q3 |
2023
Processing cost
Q4
Q1
2024
Atlantic farming sustainability: favorable outcome
Atlantic sustainability indicators
(closed sites)
Indicator | Q1 | Q1 | Q1 | Q1 |
2021 | 2022 | 2023 | 2024 | |
FIFO Ratio | 0.75 | 0.54 | 0.43 | 0.38 |
Length of cycle/Fallow period (months) | 17/7 | 15/9 | 14/10 | 15/9 |
Escapes (# of fish) | 37,150 | 0 | 0 | 1,795 |
Average antibiotic treatments | 2.0 | 2.6 | 0.5 | 1.5 |
Antibiotic usage (g/MT) | 519 | 599 | 53 | 475 |
Antiparasitic usage (g/MT) | 4.1 | 12.6 | 5.4 | 13.5 |
10
- Fish in Fish Out ratio < 0.5, in line with SLL target.
- Farming's length of cycle in average level, lowering risks and extending fallow periods.
- ASC certified harvested biomass at 99% in 2024 (100% in 2023).
- Escapes due to fish net cutting sabotage in waiting cages at primary plant. Salmones Camanchaca filed a criminal claim before the prosecutor.
- Higher AB used for fish´s wellness in one sea-farm, which also had a large sea lice outbreak.
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Salmones Camanchaca SA published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 03:49:06 UTC.