$33m in profit, and Tassal angling for more
The company made a net profit of $33.4 million in the year to June 30, a 19.1 per cent rise from the previous year's $28.1 million.
Revenue grew by 3.9 per cent to $272.8 million, while earnings increased 14 per cent from the previous year as more Australians added salmon to their plates.
Since 2006, Tasmanian salmon consumption in Australia has increased from 1.08 kilograms per person, annually, to 1.63kg in 2013.
"Tassal's successful marketing campaign has enabled the company to strongly grow domestic volumes through increasing per capita consumption," chief executive Mark Ryan said.
The fish producer's full-year results show it made more money from selling less fish, with total volume down 3.8 per cent and revenue up 3.5 per cent.
"We are now sustainably generating both more sales dollars and dollars per kilogram from slightly less volume sold," Mr Ryan said.
"It's really pleasing to see that the stars have aligned."
Revenue from retail sales of Tassal's fresh and smoked salmon range jumped 17.8 per cent between 2012 and 2013.
The producer expects this to rise further in 2014 after it signed two and three-year agreements with the major supermarkets, with 70 per cent of Tassal's volume now under contract. Tassal also plans to increase prices to offset losses generated by last summer's higher water temperatures.
On Tuesday, Tassal shares closed up 6¢ at $2.65.
Frequently Asked Questions about this Article…
Tassal reported a net profit of $33.4 million for the year to June 30, a 19.1% increase from the previous year’s $28.1 million.
Tassal’s revenue rose to $272.8 million. The article notes revenue growth of about 3.9% year‑on‑year (and also references a company comment that revenue was up 3.5% while total volume fell).
Tassal generated more sales dollars and a higher dollar‑per‑kilogram by improving margins and marketing. The company said it earned more from slightly less volume, with total volume down 3.8% while revenue rose.
Australian per‑capita consumption of Tasmanian salmon rose from 1.08 kg in 2006 to 1.63 kg in 2013. Growing domestic consumption supports Tassal’s sales and is a positive demand trend for investors to watch.
Retail sales of Tassal’s fresh and smoked salmon jumped 17.8% between 2012 and 2013, highlighting strong growth in supermarket and retail channels.
Tassal signed two‑ and three‑year agreements with major supermarkets, putting about 70% of its volume under contract. The company also plans to increase prices to help offset recent production losses.
Yes — last summer’s higher water temperatures caused losses. Tassal plans to increase prices to offset those losses and protect margins going forward.
On the Tuesday reported in the article, Tassal shares closed up 6 cents at $2.65.
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