Leroy salmon profit soarsThis article was originally published in Foodnews
NORWEGIAN processor Leroy Seafood Group, which majors on salmon products, had a turnover of NOK4.05 billion. (USD644 million) in the first half of 2010, an increase of 21% from NOK3 344 million in the same period of 2009. Group operating profit before fair value adjustment of biomass was NOK623 million (USD99 million), up 72% compared with NOK363 million in the first half of 2009. Group operating margin before fair value adjustment of biomass was 15.4%, compared with only 10.9% in the corresponding period last year. The impressive increase is due to higher salmon prices and an increase in the group's holdings of salmon. The board of Leroy expects that the significant downturn in global supply of Atlantic salmon in 2010 will be followed by limited growth over the next few years. Meanwhile, global demand for Atlantic salmon will continue to develop positively.