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Norwegian processor takes hit from soaring raw material prices

Lower volumes also hit the company.

A significant fall in volumes and burdensome raw material prices dragged down results for Norwegian salmon and trout processor Sotra Fish Industries in 2018.

The most significant drop was operating profit, which fell 81 percent to NOK 3.3 million (€339,900/$382,800) last year. Revenue also decreased by 11 percent to NOK 411 million (€42.3 million/$47.7 million).

With the exception of the company's modified atmosphere packed (MAP) line, there has been a decrease in production volume across all other departments, and the company says results were as expected given the economic climate.

The company is hoping for a better 2019, having invested NOK 2.2 million (€226,600/$255,200) in production equipment in 2018.

"It's hard to say, but I want to say we are better off this year than last year," General Manager Kjell Inge Eide told IntraFish.

Key figures SOTRA FISKEINDUSTRI (figures in NOK million)
2018 2017 change
Revenues 411.2 460.4 -10.7%
Operating profit 3.3 17.2 -80.8%
Result before taxes 3.3 16.7 -80.2%
Profit 3.8 12.1 -68.6%
Operating margin 0.8 % 3.7 % -78.4%
Equity 50.1 56.3 -11.0%
Total balance 108.5 114.9 -5.6%
Long term debt 19.6 16.5 18.8 %

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