Mitsubishi Corporation, the parent company of Norway-based Cermaq, reported on 7 May in its financial results for the year ending on March 2021 that the company saw a drop in revenue in 2020.
The company reported revenues of JPY 12.8 trillion (USD 118.5 billion, EUR 97.4 billion), down nearly 13 percent from last year, mainly due to decreased volumes in its petroleum business. Gross profit fell by 10 percent from 2010, to JPY 1.6 trillion (USD 147.6 billion, EUR 121.4 billion) due to lower prices for Australian metallurgical coal and decreased commission from its Lawson’s convenience store franchises. Profit after taxes decreased by 68 percent, to JPY 172.6 billion (USD 1.59 billion, EUR 1.30 billion).
Mitsubishi Corp. divides its business into 10 segments: natural gas, industrial materials, petroleum and chemicals, mineral resources, industrial infrastructure, automotive and mobility, food industry, consumer industry, power solution, and urban development.
The company’s food industry group, which includes Cermaq, reported a consolidated net income of JPY 39.4 billion (USD 362 million, EUR 297 million), a decline of 26 percent from the prior fiscal year. The company forecasts that the group will grow by 1.6 percent in FY2021.
One-off gains in the sector included a gain on the sale of partial stake in ARISE P&L, a logistics terminal in Gabon. One-off losses were related to a palm oil venture in Gabon, and impairment losses (a write-down in value) on the company’s Australian grain business.
Cermaq, a wholly owned subsidiary which farms, processes and sells salmon, earned JPY 400 million (USD 3.7 million, EUR 3 million) in FY 2020.
Cermaq’s operations in Norway produced 73,500 metric tons (MT) based on a gutted weight equivalent. The company produced 17,500 MT in Canada, and 85,600 MT in Chile. Salmon prices were suppressed and fluctuated wildly in the U.S. market during most of 2020.
In 2018 and 2019, prices were fairly steady at close to USD 5.00 per pound. (EUR 4.11), but in 2020 wholesale prices in the U.S. swung between USD 3.25 and USD 4.25 (EUR 2.67 and EUR 3.49) between April and November, which is near or below production costs.
Tokyo-based seafood distribution, refrigeration, and logistics company Toyo Reizo Co., Ltd, which is 95.08 percent owned by Mitsubishi, performed better, moving from a loss of JPY 300 million (USD 2.7 million, EUR 2.3 million) to a gain of JPY 2.1 billion (USD 19.2 million, EUR 15.9 million).
