THE SCOTTISH Salmon Company has seen operating profit fall by a third because of a drop in earnings per kilo, from 75 pence a kilo in Q1 of 2015 to 30p this year.

The hit on profits at the Norwegian listed company comes in spite of first quarter revenue growing 6.6 per cent to £29.1m, on harvested volumes of 6,741 tonnes – up from 6,261 tonnes in Q1 of 2015.

Market conditions were said to be encouraging throughout the quarter with industry prices continuing to rise in response to growing consumer demand and lower output from Chile. Exchange rates have also been more positive with the Norwegian Krone strengthening, allowing the company to secure better prices in the traded market in sterling.

Craig Anderson, managing director at The Scottish Salmon Company, said: “While 2015 was not without its challenges, we secured our second highest volumes and turnover. We have continued this positive performance into 2016, demonstrating year on year growth and clear progress with our export strategy through marketing and innovation.”

Mr Anderson added that with strong prices forecast for the rest of the year and growing consumer demand, the company was well-placed to meet our growth targets.