Huon Aquaculture Group Limited Annual Report 2017 | Financial Summary | Highlights

Huon Aquaculture has delivered its strongest profit on record with the full productivity benefits from the Controlled Growth Strategy on track to start delivering in FY2018.

Financial highlights

Sales Revenue
$259.5M
2016: $233.7m
Sales Revenue



Operating EBITDA
$62.8M
2016: $26.4m
Operating EBITDA



Retail Market Sales
22%
2016: 10%
Retail Market Sales



Inaugural Dividend
5c/s
Dividend of 5 cents per share totaling $4.4m franked to 50%.

Operational highlights

  • Record revenues as a result of continued stable pricing in the domestic market supported by the sustained uplift in international salmon pricing.
  • While tonnages were slightly down this year as a result of the accelerated harvest in FY2016, average fish weight improved significantly as a result of improved fish feed diets combined with ideal growing conditions during a mild winter and a cooler than average summer.
  • Operating EBITDA increased 138% underpinned by stronger prices, a more balanced channel mix and improved margins compared to the previous two years.
  • New sales agreements resulted in 23% of production volume being directed into the retail market, providing a better balance to Huon’s sales channel mix and greater certainty in planning future production.
  • Despite starting the year with a lower biomass than normal, the value of Huon’s biomass at year end increased by $40.8 million, including a fair value uplift of $19.2 million, to a record level of $188.0 million, reflecting the return to higher fish weights and improved pricing environment and channel mix.
  • Operating costs continued to be affected by the difficult growing conditions experienced in the second half of FY2016 and the additional efforts required to rebuild the 2015 Year Class which had been impacted by the issues associated with poor feed. Average production costs (per HOG kg) in the second half of FY2017, however fell by 12% compared to the previous corresponding period (pcp), supporting the forecasted trend of declining costs as productivity benefits start to flow through into FY2018.
  • Cash flow from operations increased during the year to $54.0 million compared to $16.3 million in FY2016 delivering a strong cash balance of $23.0 million at year end.
  • The operating environment globally continues to be supportive of salmon prices being sustained at current levels due to the fundamental supply demand imbalance as some of the major salmon producing countries struggle to manage problems such as sea lice.
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