Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Was There Something Fishy In The Tassal Group Ltd HY Report?

Tassal Group Ltd (ASX:TGR) today released its first half-year results for FY19 to the market with another record result and its shares up as high as 8.6% in early trading.

Tassal Group Ltd (ASX: TGR) today released its first half-year results for FY19 to the market with another record result and its shares up as high as 8.6% in early trading.

Tassal is a Tasmanian-based salmon farming company founded in 1986 and listed on the ASX in 2003. Its operations include hatching, farming, processing, sales and marketing of Atlantic salmon. It operates under four different brands of Tassal, Superior Gold, Tasmanian Smokehouse and De Cost Seafoods.

Key Results

Tassal’s results release focused on its operating earnings which excludes the fair value changes to its salmon at sea and prawns in ponds under AASB 141 ‘Agriculture’. It handed down impressive results on an operational basis, including:

  • Revenue up 25% to $326 million
  • EBITDA up 21% to $64 million
  • EBIT up 23% to $50 million
  • NPAT up 22% to $32 million.

More impressively, its operating cash flow was up 96% to $79.65 million.

Growth From Harvest and Price Offsets Costs of Goods Sold

Tassal reported an increase in harvest tonnage, up 16.4% to 21,710 hog tonnes despite its hog size down 7.8% to 4.7kgs. This was offset through increased sales with hog tonnage up 21.7% to 20, 578 tonnes. Further boosting their results was an increase in the average salmon price up 9.1% to $13.87, which helped to offset increased costs of goods sold.

Favourable Conditions

Tassal attributed favourable market conditions both domestically and internationally to increased sales and prices. Increased consumption per capita helped domestically, while international demand continued to outpace supply.

Strong Growth, But Still A Commodity

While Tassal was a beneficiary of increasing prices this half, they could easily have been subject to decreasing prices due to the nature of commodities. Since they are a price taker subject to market supply and demand, it is not a stock I am looking to add to my portfolio.

[ls_content_block id=”14948″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content