Salmon farmer Huon Aquaculture fell 16 per cent today after reporting a lower profit due to a smaller fish haul due to an “extended summer” and warmer waters in Tasmania.
The fish farmer also warned of a possible decreased harvest in the coming financial year.
Profit dropped 37 per cent to $26.4 million year-on-year while the new year had started with smaller fish numbers “due to difficult growing conditions in the second half of FY18”.
Huon (ASX:HUO) forecast a lower harvest volume ths year of 20,000 tonnes — below the record 22,968 tonnes it harvested in FY18.
As a result Huon’s shares dropped 16 per cent to an intraday low of $3.95, before recovering slightly to $4.26.
Still, there was some positive news for shareholders, with revenue up 23 per cent in the financial year to $317.9 million.
The news comes after a positive half-year announced in February, when record size salmon and ocean trout helped Huon double its profit compared to the previous six months.
Huon’s first full year dividend of 10c will be paid on October 11.
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Huon was buoyant about its potential for growth in coming years.
“Beyond FY19 we expect Huon to return to production levels in line with the market’s long term average growth of around 10 per cent.
“This outcome, supported by market expectations that pricing will continue to be underpinned by the shortage of supply over demand, should deliver continued growth in operating EBITDA in FY20.”
Huon boss Peter Bender said the company had reached a record operating profit.
“Huon’s sales volumes and revenue both increased strongly in FY18 as a consequence of expanded production volumes and the sustained strength of the salmon price locally and internationally,” he said.