I've heard of flying fish and it seems the Tassal Group Limited (ASX: TGR) has sprouted wings of its own with the stock finding itself among the best performers on the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index this morning.
It's a day for breaking records for the salmon farmer. The TGR share price surged 9.4% to highest level of $5.09 at the time of writing after management delivered its best ever first half results.
This makes Tassal the third best performer on the S&P/ASX 200 after the Breville Group Ltd (ASX: BRG) share price and Cleanaway Waste Management Ltd (ASX: CWY) share price.
Big catch
Tassal posted a 22% increase in interim net profit to $31.7 million as operating cash flow surged 96% to $79.6 million.
The company also achieved record tonnage with fish harvest up 16.4% to 21,710 hog tonnes. The value of live biomass (the value of fish that are still alive in its pens) have increased 7% to $330.2 million.
The salmon market remains strong with the company reporting that consumer demand is outpacing supply, and that's driving up prices across all market channels.
The higher price and Tassal's ability to increase the average weight of its fish have offset higher costs.
Tassal is expanding into prawn farming to help diversify its income and that "material earnings" will commence in the short- to medium-term – although management didn't specify what that is.
Clear waters ahead?
The controversy around pollution from its fish farms in Tasmania seem to be water under the bridge with management promising a strong finish to the financial year.
"Tassal is in its strongest position ever to deliver on its long-term growth strategy, with diversified operations across salmon and prawns," said Tassal's chief executive Mark Ryan.
"Tassal is in a very exciting position with a strong salmon business, strong De Costi Seafoods distribution business, and attractive newly acquired prawn business, to be able to deliver another record result in FY19."
The company's strong results has also fired up the Huon Aquaculture Group Ltd (ASX: HUO) share price. The rival to Tassal jumped 5% to a more than one-year high of $5.03 in late morning trade.
