Salmones Camanchaca S A : - Q2 2020 results

Salmones Camanchaca - Q2 2020 results
Highlights: 

o	Atlantic harvest volumes up 50% from Q2 2019, to 10,670 tons WFE
o	A sharp decline in market prices in the quarter due to Covid-19 impacted total
revenues which increased by 3.6%
o	30% loss of Islotes site's biomass in the quarter due to extreme weather,
impacted bottom line by an estimate of USD4.1 million net of insurance
o	The company estimates harvest volumes of 51,000-53,000 tons for Atlantic
salmon and 3,000 tons of Coho in 2020
o	A limited number of Covid-19 cases within Salmones Camanchaca, allowed the
company to have continuity of operations throughout the worst part of the
pandemic
o	Despite cost contain pressures, Salmones Camanchaca reinforces it sustainable
salmon farming by publishing its sixth version of the Sustainability Report
 
Santiago, Thursday August 20, 2020: Salmones Camanchaca reports a 49.5% increase
in harvest volumes during the second quarter of 2020, compared to same period
2019, reaching a total volume of 10,670 tons WFE in the quarter.

Substantially higher sales volume was though offset by lower prices in the
quarter due to the weaker food service demand in the Covid-19 situation, leaving
revenues 3.6% higher. 

Atlantic salmon live fish (ex-cage) costs were USD 3.32/kg in Q2 2020, 21.5%
lower than Q2 2019, but 11% higher than the long-term target of USD 3/kg.

Total processing costs fell to USD 1.13/kg WFE, 17.5% lower than Q2 2019, but
was 13% higher than the long-term goal of USD 1/kg WFE due to lower processing
volumes, direct costs of employee health protection measures caused by the
pandemic, and larger fraction of value-added products.

EBITDA was negative USD 5.8 million, USD 10.5 million lower than Q2 2019, due to
189 US cents lower prices than a year ago. Also and to a lesser extent,  Coho
sales contributed with a negative USD 2.8 million, due to low prices and the
higher cost of production in its first cycle. The EBITDA for the first half of
the year is USD 9.3 million but 58.9% lower than same period 2019.

Consequently, operational EBIT in Q2 2020 was negative USD 9.4 million, or USD
11.2 million lower than in Q2 2019. 

Commenting on the performance of Salmones Camanchaca in these pandemic times,
vice chairman Ricardo García, said: 

"Covid-19 is still around us, and therefore our people's safety remains a high
priority. With that, Salmones Camanchaca will preserve its business continuity
and deliver high achievements soon. I am pleased to report that all sanitary and
protection measures across the organization are proven effective and
consequently, there are so far only 1.5% Covid-19 cases in Salmones Camanchaca,
and operation has been running throughout these pandemic times". 

"The sharp fall in market prices has of course affected our sales and
profitability in the short term, but we remain confident about the position of
Salmones Camanchaca and on the beauty of salmon as a highly nutrient and
exquisite food. As a leading supplier of Chilean high-quality salmon, we are
ready to serve the growing market for Atlantic salmon for many years to come. In
the meantime, Salmones Camanchaca is financially healthier than ever before to
navigate through Covid-19." 

Despite sanitary and economic crisis, the Company continues with its business
strategy, prioritizing value added products that allows to adapt to a shifting
demand, and promoting sustainable salmon farming thru all the value chain, in
line with its sustainability model launched a year ago, and reinforced in its
6th Sustainability Report, published as of this date. 

Garcia finalized:

"When uncertainty prevails everywhere, and organizations face unprecedented
pressures on markets, costs and investment spending, Salmones Camanchaca
reiterates its commitment and respect for the environment, the wellbeing of
communities, and its low costs goals both at seawater and in processing. Despite
the higher turbulence of today's waters, the horizon has not change, and the
ship has not lost its course. Short term lack of profitability serves us a
purpose: to become as effective and efficient as ever before, and in everything
we do." said in concluding the executive. 


For more information please contact:
Ricardo García, Vice chairman, [phone] / [e-mail] 
Marta Rojo, Head of IR, [phone] / [e-mail] 

About Salmones Camanchaca 
Salmones Camanchaca S.A. is a vertically and fully integrated salmon producer
with operations in farming, processing, marketing and sale of salmonids. The
company is also involved in farming of trout through a joint venture (1/3 share)
and has an estimate harvest of 55-60,000 tons WFE of Atlantic salmon for
2019-2021. Therefore, including trout production in the Company's farming sites,
the total existing production capacity reaches 70-75,000 harvested tons WFE. The
company has approximately 1,500 employees. 

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.

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