Russian Aquaculture announces IFRS financial results for the first half of 2019

  • Record performance resulting from implementation of the development plans announced during the SPO in 2017

  • In 2019, the Company embarked on a path to profitable growth, while, at the same time, stocking juvenile fish, feeding fish, and catching and processing fish that had reached marketable weight

  • Transformation into a vertically integrated company with full control of all stages of the production, processing, and sale of fish

  • Increase in sales and market share in Russia’s recovering aquacultural red fish market

  • One of the best-performing companies in the industry with an EBIT/kg of RUB 200/kg

  • Potential to increase production from 20 ths tonnes to 30–35 ths tonnes per year by 2025

  • Low leverage affords us to raise funds for further development at a low cost


Russian Aquaculture announces IFRS financial results
for the first half of 2019

Moscow, 29 August 2019. PJSC Russian Aquaculture (the “Company”), Russia’s largest commercial fish producer (aquaculture), announces its IFRS financial results for the first half of 2019.


  • As a result of annual stocking in 2017, 2018 and 2019, the Company had three generations of fish in the water during the latest reporting period: juveniles from the current year, as well as commercial fish from the two preceding years.
  • The transition to annual stocking, monitoring of the full rearing cycle, the well-functioning organisation of feed supplies, and the successful development of our own sales system resulted in a considerable increase in sales to 9.6 ths tonnes in H1 2019, compared with 0.8 ths tonnes a year earlier.

  • Increased sales and a favourable pricing environment enabled the Company to achieve revenue of RUB 4.8 billion, compared with RUB 0.3 billion for the same period in 2018.

  • Adjusted EBITDA reached RUB 2.1 billion. Adjusted EBITDA margin was 44%.

  • Adjusted EBITDA for 12 months[1] (1 July 2018 to 30 June 2019) amounted to RUB 3,146 million. EBITDA margin was 42%.

  • In terms of operating EBIT/kg of products sold (a generally accepted measure of production efficiency in the aquaculture business), the Company had one of the best results in the industry in H1 2019: RUB 200/kg (EUR 2.7/kg; NOK 26/kg).

  • The Company has been consistently profitable over the past three years – net profit in H1 2019 exceeded RUB 1 billion, a more than six-fold increase compared to the same period last year. Net profit for 12 months amounted to RUB 3,145 million.[2]

  • The Company’s strong financial results have enabled it to generate high cash flow (operating cash flow for the first six months of 2019 amounted to RUB 2,139 million) and to invest in further business expansion and reduction of its debt burden. As of 30 June 2019, the ratio of net debt to adjusted EBITDA for the preceding 12 months was 1.00x, compared with 3.85x as of 31 December 2018, which provides additional flexibility to use borrowed funds to finance future growth.


Operating performance, tonnes

            Six months ended 30 June




Sales volume




Biomass of fish in water at the end of the period




Financial performance, RUB million








Gross profit




Operating profit




Fair value gain on biological assets




Operating EBIT




Operating EBIT, RUB/kg




Adjusted EBITDA[3]




Net profit




Financial position, RUB million

30 June 2019

31 December 2018


Cash and cash equivalents




Net debt




Net debt/12M EBITDA, x





Russian Aquaculture CEO Ilya Sosnov said: “The first half of 2019 was an important milestone for our Company. As we wrap up this reporting period, we have, in effect, three generations of fish in the water, that is, the full cycle. Following our SPO in 2017, we attracted investments in order to carry out an extensive capital investment programme focused on transforming Russian Aquaculture into a vertically integrated business that controls every aspect of value creation: from raising our own juvenile fish, through the operation of cages and our own fleet, to direct sales.

“Stable cash flow has enabled the Company to invest in expanding its capacity to 30–35 thousand tonnes of fish production per year in 2025. Moreover, the Company already has the necessary hatcheries to achieve these plans.   

“Globally, we see growing interest on the part of investors in aquaculture companies, which is accompanied by an increase in the market capitalisation of major players around the world. The development of the Russian market for chilled red fish is only gaining momentum; we expect continued growth in demand for our products, which are unique in terms of their freshness and other features.”          


The Company has a strategy for further growth, the key elements of which are an increase in the Company’s capacity for rearing juveniles and the acquisition of cages, new vessels, and additional hatcheries. The volume of capital investments in H1 2019 amounted to RUB 1.4 billion. The Company is expecting investments of more than RUB 2.5 billion by the end of the year.   


The situation in the global salmon market in the first half of 2019 was characterised by high prices, which propped up the margins of the world’s largest aquaculture companies.

The development of the Russian salmon market is characterised by stable growth in market volume, which is backed by steady demand for fish from an ever-growing range of consumers. As of the end of 2018, the volume of Russia’s aquacultural red fish market was worth close to RUB 50 billion, or about 100 ths tonnes of product, easily surpassing projections. At the same time, Russian Aquaculture’s market share in 2019 is expected to be around 17–20%, as the Company uses its competitive advantages in terms of quality and freshness to outperform foreign producers.


According to previously announced plans, the Company expects to produce about 18–20 ths tonnes of fish by the end of 2019.


Russian Aquaculture is one of the leaders in the production of Atlantic salmon and trout in Russia.

The Company’s core business areas are:

  • Commercial farming of Atlantic salmon and sea trout in the Barents Sea in the Murmansk region

  • Commercial farming of trout and the production of red caviar in lakes of the Republic of Karelia

Russian Aquaculture’s core strategic focus is on growing its aquaculture business. The Company currently owns cultivation rights for 34 sites for the farming of salmon and rainbow trout. The total potential production volume for these sites is around 50 ths tonnes of salmonids.

The Company’s long-term development strategy involves the creation of the largest vertically integrated player in the aquaculture market, including the production of feed and stocking material, primary processing, and distribution of the Company’s own products.




Denis Denisov

Tel.: +7-985-410-3544



Irina Logutenkova

Tel.: +7-910-438-4843



This press release may contain projections or other forward-looking statements with regard to future events or the Group’s future financial performance. Forward-looking statements contain such words as “expected”, “as seen”, “projected”, “according to estimates”, “planned”, “will be”, “could”, “can”, “perhaps” and variations of such expressions (including the negative connotations thereof). Recipients are cautioned that any such statements are only projections and that actual results or developments may differ materially from those projected in any such estimates or other forward-looking statements. The Group does not intend to update this press release to revise projections or to include information about events and other developments that occurred after the publication of this document. There are various factors that could cause actual results to differ materially from those anticipated in such forward-looking statements contained in this press release; this applies, in particular, to the general economic situation, the market environment, the risks associated with doing business in Russia, sudden market changes in the business sectors of the Group, and many other risks specific to the Group and its activities.

[1] EBITDA for the period from 1 July 2018 to 30 June 2019.

[2] Net profit for the period from 1 July 2018 to 30 June 2019.

[3] Group management determines adjusted EBITDA as the sum of the following indicators:

• profit/(loss) before tax for the year;

• foreign exchange gain/(loss), net;

• interest income/expense, net;

• depreciation of fixed assets and amortisation of intangible assets;

• fair value profit/(loss) on revaluation of biological assets;

• loss on sale of shares to employees under preferential terms.

[4] Including restricted cash and cash equivalents: RUB 450.0 million.