A strong balance sheet has supported Tassal Group’s continued growth, according to its MD and CEO Mark Ryan, with the seafood company’s FY20 results revealing a 23.4 per cent growth in its operating EBITDA to $138.6 million.
Tassal Group snapshot FY20
- Revenue: $562.54 million, up. 0.3 per cent from FY19
- Operating EBITDA: $138.55 million, up 23.4 per cent from FY19
- Statutory NPAT: $64.17 million, up 13.3 per cent from FY19
- Operating cashflow: $49.85 million, down 44.5 per cent from FY19
Tassal Group says its salmon business was delivering on strategy, with investment and 12.9 per cent increase in live biomass, production efficiencies and optimised sales mix, positioning the company well for further growth in returns.
In its prawns segment, the company harvest 2,460 tonnes as expected and is planning to have a “substantial uplift” for FY21, with harvest volume rising to 4,000 tonnes with infrastructure in place.
Around $82 million was invested to build civil and pond works for prawn production at Proserpine, Mission Beach and Yamba, installing SmartFarm and new technologies, and expanding Proserpine for stocking in FY21.
Ryan said Tassal’s FY20 growth strategy was to increase operating efficiencies within salmon production, while diversifying operations by transferring our knowledge and skills to prawns.
“Importantly, our operating cashflow, debt headroom, low gearing and strong balance sheet have supported investment to underpin Tassal’s continued growth,” he said.
“While Tassal is classed as an Essential Service with respect to COVID-19 and our operations have continued, we have worked hard to ensure the continued safety and wellbeing of our employees.
“Positively, consumer behaviour has shifted as people increasingly eat at home, and search for Australian- made trusted sustainable brands, further supporting demand for Tassal Salmon and Tropic Co Prawns.
For its FY21 strategy, Tassal aims to replicate the success of its salmon business now with prawns, with the company’s strategies position to align to consumer needs during and after COVID-19.
“Through our product and brand strategy, Tassal has an opportunity to drive awareness and growing consumption per capita of Australian grown Tassal Salmon and Tropic Co Tiger Prawns,” said Ryan.
“Despite the impact of COVID-19 to Australian and global economies and markets in Q4 FY20, Tassal’s risk management and business continuity planning processes supported salmon sales volume growth of 13.4% in Q4 [vs Q4 FY19], with retail sales particularly strong.
“While COVID-19 has impacted the operating environment and created much uncertainty, some positive consumer trends have emerged that should gain momentum in FY21 and support further growth in Tassal’s salmon and prawn sales volumes.
“Tassal is a global seafood leader in digital technology, and we believe our competitive advantage should be further enhanced in FY21 and mitigate against risks from market disruptions caused by COVID-19.”
Tassal Group ranked in at #41 in the Top 100 Food & Drink Companies 2019 report.
