Q2 2024 Salmones Camanchaca SA Earnings Call Transcript
Key Points
- Operating revenue increased by almost 50% compared to the second quarter of 2023 due to higher harvest and processing volumes.
- Harvest weights improved from 4.4 kilos in the first quarter to 5 kilos in the second quarter of 2024.
- Atlantic salmon harvest was 81% higher than the second quarter of 2023, showing significant recovery in production.
- The company achieved better relative price performance compared to peers despite overall price declines.
- Positive cash flow of $24 million in the quarter due to reduced inventories and increased sales.
- Significant price declines with Atlantic salmon prices down 10% and Coho prices down 25% compared to the previous year.
- EBIT per kilo for Coho was negative, reflecting the impact of price declines.
- The company faced weaker market conditions, particularly in the US, affecting margins.
- High ex-cage costs remain a concern, although improvements are expected in the second half of the year.
- The company's net financial debt exceeded the sustainability-linked loan threshold, requiring a waiver from the bank.
Thank you, Alex and Fernando from BTG for organizing this earnings report call, which we will utilize to explain the second quarter of 2024 performance. In that quarter, the highlights that we intend to cover here is mainly that our operating revenue during the quarter were almost 50% higher than in the second quarter of 2023. And the reason for that is that we harvest and process a lot more fish than in 2023, second quarter.
However, it was a much lower price that we sold our products. The harvest for the quarter was 11,600 metric tons of Atlantic. And obviously there was no Coho harvest in the second quarter and that was in line with the company's planned and about 81% higher than the volume harvested in the second quarter of last year.
Harvest weights grew from 4.4 kilos in the first quarter of 2024 to 5 kilos in the second quarter of the same year 2024. That is very much in line with the harvest weights of the second quarter of 2023. Remember that we had some issues with the harvest weights in the first quarter
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