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Nova Austral delays stocking, sees sales slide in Q1

The company has been battling with appeals against the latest Cabo Pilar concessions.

Chilean salmon farmer Nova Austral reported slightly stronger earnings during the first quarter of 2019 and expects a stronger harvest over the next two quarters.
Operational earnings before interest, tax, depreciation, and amortization (EBITDA) crept up slightly, by just under 2 percent, to $6.2 million (€5.4 million).

But revenues slid 7.1 percent during the quarter to $23.3 million (€20.4 million). The largest share of revenues came from value-added products, the fresh segment and portions, with sales to the United States and European Union representing 80 percent of the total. Russia's share fell because of smaller sizes in the quarter.

EBIT per kilogram of Nova Austral salmon showed a 0.5 percent improvement compared to the same period last year. The company seeks better cost development in the second half of the year and a more stable price outlook.

Nova Austral faced issues with licensing during the quarter and will take necessary legal action to defend its rights if the case permits. For that reason, stocking during the year has been delayed but is expected to normalize again in the next two quarters.

During the quarter, the company acquired Pesquera Cabo Pilar, which already has four licenses for salmon farming in the Beagle Channel.

Nova Austral wins appeal over Cabo Pilar concessions

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Harvest volume guidance remains in the range of between 26,000 and 28,000 metric tons for 2019.

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