While there was improvement in the fresh and frozen operations, the Board of Directors expressed disappointment about the performance of the smoked units, and the company said that it would take further actions to achieve satisfactory returns into the future.
The volume sold was 4 percent lower than in Q1 2012, but the average price achieved in EUR was 5 per cent higher. Marine Harvest said that the fierce competition in the smoked market is what influenced both prices and margins in Q1.
The salmon sales volume fell by 1 per cent year-on-year. While fresh salmon sales were positive thanks to high promotional activity, market pressure and lower smoked sales negatively impacted the margins.
Marine Harvest expects the market to remain challenging for the foreseeable future. It also plans to increase the price of the end product so that it can achieve sustainable margins, given the increasing raw material prices.
Sales of Atlantic salmon made up 65 per cent of the total sales value in the first quarter of 2013 compared to 63 per cent a year ago.
In terms of margins, the smoked operations had the hardest time due to delays in transferring the increased cost of raw materials to the next level in the value chain. The fresh and frozen business improved as a result of the actions taken.
Operational EBIT for VAP Europe ended at NOK - 18 million (EUR -2.4 million) in the period against NOK - 5 million (EUR -655,757) in Q1 2012. The margin contribution from salmon (mainly Norwegian salmon) was NOK - 14 million (EUR -1.8 million), while the contribution from other species was NOK - 4 million (EUR -524,605). The EBIT margin in VAP in the period was - 2.0 per cent compared to - 0.6 per cent a year ago.
