Although Tassal saw a small fall in revenue, the Tasmanian fish farmer still reported a strong rise in profits. Tassal is the biggest salmon producer of three in the Tasmania region.
Analysts are not surprised by the jump in profit, which was in double digits for another consecutive year. “"It's doing very well. We love our salmon down here and the rest of the Australia seems to as well," said Bede Donnelly, financial analyst for Bell Potter.
The company experienced a 13.9 percent jump for the 2013-2014 financial year, totalling $78.6 million. The net profit after tax was factored in increased 22.7 percent to $41.1 million. Amongst the good news, revenue dropped 2.4 percent, taking the total to $266.3 million.
Donnelly believes the salmon industry in Tasmania is experiencing a boom, and it’s being led by Tassal. The company’s CEO Mark Ryan couldn’t agree more.
''Tassal has again produced double digit profit growth, further strengthening the company's operating cash flow and balance sheet, he said. “Tassal's sales initiatives and operating efficiencies continue to drive sustainable earnings growth and the generation of more dollars per kilo from domestic market sales. Importantly, this was against the backdrop of reduced fish supply as we dealt with the tail end of the hot summer 2012-13.''
Ryan went on to peak about how the boost proved the continued success of the company’s focus on the growing value of the domestic market. The demand for Tasmanian salmon around the country has increased, allowing Tassal to stock more supermarket shelves with their product. The company has opened two exclusive stores in Melbourne and Hobart which have proved very successful. Donnelly shared that he wouldn’t be surprised if Tassal were to open more stores in the near future.
Information sourced from The Advocate.