Tassal’s profits rise along with salmon consumption
The 21.8 per cent increase brings Tassal’s net profit to AUD $49.99 million for the year.
Tassal’s Managing Director and CEO Mark Ryan said that the results can be attributed to Australia’s increased salmon consumption, more efficient operations within the company and streamlining processes across the supply chain.
“Pleasingly, the focus on operational performance right across our supply value chain, from growing and processing to logistics and distribution, not only enabled us to mitigate the negative impact of lower pricing in the wholesale and export markets over FY2015, it has also put the company in a strong position to continue to sustainably grow the business going forward,” said Ryan.
Tassal said the increasing profits will be used to invest in growing the amount of fish the company produces, and there will also be investment into increasing individual fish weight. Ryan said that money was being spent wisely in order to achieve sustainable growth and returns over the long-term.
“Importantly, we evolved our corporate growth strategy from Salmon only to Salmon and Seafood, “ said Ryan.
“This will underpin further growth for the business from this year on. Following the acquisition of De Costi Seafoods, Tassal’s total addressable market opportunity has grown from $700 million to $4.3 billion annually, and we expect the benefits from the acquisition to follow immediately with the acquisition being EPS accretive pre-synergies.”
“We are now looking to further optimse the entire Salmon and Seafood value chain, driving future economies of scale from a cost perspective and maximising domestic consumption in Seafood,” said Ryan. “The De Costi acquisition will be pivotal in delivering efficiencies across the Salmon and Seafood supply value chain for Tassal.”
“We are excited about our Salmon and Seafood growth strategy and the company’s ability to grow sustainable earnings, cash flows and dividends,” said Ryan