The Huon Aquaculture Group Ltd (ASX: HUO) share price has closed lower on Thursday after the Aussie salmon farmer's latest full-year results release.
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Huon share price edges lower after $128 million loss
For those who missed it, Huon announced its results for the year ended 30 June 2021 (FY21). Some of the key takeaways include:
- Revenue up 24% on the prior corresponding period (pcp) to $426.4 million
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of -$113.2 million, compared to +$48.8 million in FY20
- Operating cash flow down 136% on pcp to -$3.0 million
- Earnings per share (EPS) of -120.79 cents compared to +5.63 cents in FY2020
The Huon share price closed down 0.26% following the result, having slumped as low as 2.34% throughout the day.
What happened for Huon in FY20?
It's been a big few months for Huon. Australia's second-largest salmon producer reported a drop in global salmon prices due to COVID-19 and noted the impact of surging freight costs on its finances.
There were also the November 2020 fires in one of its fish pens that saw the company lose 50,000 fish, followed by a December 2020 fire. Adding insult to injury, Huon lost a further 130,000 fish in a mass escape after a cage was damaged during cleaning.
Lower salmon prices and disruptions throughout the year ultimately combined to weigh on the FY21 earnings result.
The Huon share price has still managed to climb 44% higher in 2021 but the bulk of those gains have come in the last month following a takeover bid by Brazil-based meat processer, JBS.
Huon shares surged on August 6 after the company announced it had entered into a Scheme Implementation Deed with JBS to acquire 100% of Huon shares.
What's next for Huon and its share price?
Huon's outlook for revenue is "more positive compared to this time last year". The company is targeting a greater balance in its sales mix with expected growth from international market sales as a proportion of overall revenue.
Despite the significant losses in FY21, the Huon share price remained largely unchanged with the JBS takeover being the main driver of value at the moment.
