Huon Aquaculture Ltd (ASX:HUO) delivered a record operating net profit after tax of $35.4 million in FY2018, representing 22.9% growth on the prior FY2017.
The premium salmon farming company owes its record result to its corporate strategy, which includes ongoing investment of capital into the business.
Huon is a vertically integrated salmon producer with operations spanning all aspects of the supply chain from hatcheries and marine farming to sales and marketing.
Its marine farms are located in Tasmania along with its logistics infrastructure delivering salmon quickly and efficiency to the major fish markets around Australia.
Huon’s fish are grown in three marine regions: Hideaway Bay (Huon River and D’Entrecasteaux Channel), offshore in Storm Bay and Macquarie Harbour.
Record FY2018 result
Earlier this month, Huon revealed that it had achieved record revenue of $317.9 million in FY2018, an increase of 23% on FY2017.
The performance was driven by a record harvest tonnage and strong pricing underpinned by supply and demand market dynamics.
Importantly, this record result was delivered under highly challenging operational conditions in the second half.
Huon’s CEO and managing director Peter Bender said: “Huon has remained true to its strategic objective of continuing to invest for growth.
“Macro trends point to the need for continued growth to meet robust demand. With this in mind, we continued to invest for the future in FY2018 with our construction of the Whale Point Salmon Nursery and new fortress pens at Storm Bay and will continue to do so in the current financial year.
“Huon is well placed for continued sustainable growth through ongoing investment in infrastructure and expanded capacity.”
Earnings expected to grow in FY2019
The fundamentals of Huon’s business continue to be underpinned in FY2019 by a market environment in which growth in supply continues to fall short of the long term trend of growth in demand, both in Australia and globally.
The company anticipates a harvest volume for FY2019 of around 20,000 tonnes, below the record level achieved in FY2018, stronger pricing is expected to deliver continued growth in operating EBITDA.
Upcoming ASX Small and Mid-Cap Conference
Huon will be presenting at the inaugural ASX Small and Mid-Cap Conference being held in Sydney on Thursday, September 6.
To attend the conference, please register here.