Salmones Camanchaca’s Q1 2023 net earnings surge nearly 390 percent

Salmones Camanchaca closed the first quarter of 2023 with solid profits, driven by increased sales volumes at higher prices.

The vertically integrated salmon-farming firm, based in Santiago, Chile, enjoyed a lack of extraordinary mortalities, due in large part to benign oceanographic conditions. The company also benefitted from a risk-diversification strategy enacted after algae blooms dealt a big blow the company in 2021. Algae mitigation technology was implemented at six of Camanchaca’s farming sites in the quarter, with positive results the company reported.

Atlantic salmon marine biomass mortality in Q1 2023 came in at 1 percent, compared to 3.5 percent in Q1 2022 and 5.6 percent in Q1 2021 during the same cycle at comparative sites. Antibiotic use fell by 48 percent to 375.9 grams per MT in 2023 compared to 2022 and by 30 percent when compared to 2021 due to improved environmental conditions, coupled with the company’s antibiotics reduction plan, according to Camanchaca.

“Having had a more normal summer, without important oceanographic incidents, allowed for a high fish survival that was supported by our risk reduction strategy, which, added to an increase in coho and Atlantic [salmon] harvests and a strong global demand, resulted in a good start of the year,” Salmones Camanchaca Vice Chair Ricardo García said in a press release.

Camanchaca’s Q1 2023 Atlantic salmon harvest reached 11,089 metric tons (MT) whole-fish equivalent (WFE), up 37 percent year-over-year, while its coho harvest increased 275 percent to 2,491 MT WFE, compared to 663 MT WFE in Q1 2022. Its 12-month harvest total of 5,856 MT WFE aligned with its coho salmon growth plan, García said.

Camanchaca was able to attain a price-per-kilogram Atlantic salmon gain of 15.3 percent to USD 7.80 (EUR 7.21), compared to USD 6.77 (EUR 6.26) in Q1 2022, due mainly to limited global supply, while the company’s harvesting costs fell 2.1 percent year-over-year to USD 4.59 (EUR 4.24) per kilogram WFE and its processing costs decreased 3.6 percent to USD 1.24 (EUR 1.15) per kilogram WFE. As a result, Camanchaca posted earnings before interest and taxes (EBIT) per kilogram WFE of USD 1.68 (EUR 1.55), compared to a loss of USD 0.25 (EUR 0.23) in Q1 2022. 

Salmones Camanchaca was able to lower outlays “despite costs reaching record levels driven by an increase in feed costs, additional environmental risk mitigation measures to counteract oxygen/algae bloom risks, and inflation on services and other consumables,” the company said.

Camanchaca said it attained an average price for coho 5.7 percent higher year-over-year at USD 6.55 (EUR 6.06) per kilogram WFE, but the EBIT per kilogram WFE dropped 80.3 percent to USD 0.36 (EUR 0.33) from USD 1.82 (EUR 1.68) in Q1 2022. The company said this was due to increased feed costs, inflationary pressures, and by an incident of jaundice and maladaptation of some of its fish after they were placed in sea-water cages.

Overall, Salmones Camanchaca’s operating revenue surged …

Photo courtesy of Salmones Camanchaca