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

  1. Patagonia's oceanographic summer condition was more favorable than expected under El Niño cycle, but higher radiation depressed biomass.
  2. Operating Revenues up 3% at USD 117m: volumes sold up 24% but prices declined 19%.
  3. Atlantic harvest at 9.9k MT WFE down 11% YoY affected by lower harvest weights as biomass' appetite was depressed.
  4. Inventories reduced 45% QoQ, and 3k MT WFE were kept at 31st March.
  5. 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.
  7. All species EBIT/kg WFE sold was -20 cents: +19 cents in Atlantic & -102 cents in Coho.
  8. 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).
  9. Despite higher ex-cage cost, very low mortalities in Q1 (~0.5% monthly), and biology indicators were improved outperforming the industry.
  10. 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.