Salmones Camanchaca S A : Financial Statements 2024 - Q1

SALMONES CAMANCHACA S.A. AND SUBSIDIARIES

Interim consolidated financial statements

As of March 31, 2024

CONTENTS

Interim consolidated statements of financial position

Interim consolidated statements of changes in equity

Interim consolidated statements of net income by function

Interim consolidated statements of comprehensive income

Interim consolidated statements of cash flows - direct method

Notes to the interim consolidated financial statements

ThUS$ - Thousands of US dollars

UF - Unidades de fomento (a Chilean peso based inflation indexed currency unit) ThCh$ - Thousands of Chilean pesos

	CONTENTS
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
INTERIM CONSOLIDATED STATEMENTS OF NET INCOME BY FUNCTION
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS, DIRECT METHOD
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL INFORMATION	1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2
2.1	Period covered	2
2.2	Basis of preparation	2
2.3	New pronouncements	3
2.4	Basis of consolidation	5
2.5	Investments in associates	6
2.6	Segment reporting	7
2.7	Foreign currency transactions	7
2.8	Property, plant, and equipment	8
2.9	Biological assets	9
2.10	Intangible assets other than goodwill	10
2.11	Interest costs	11
2.12	Impairment losses on non-financial assets	11
2.13	Financial assets and liabilities	11
2.14	Inventories	13
2.15	Statement of cash flow	14
2.16	Classification of Current and Non-Current Balances	14
2.17	Earnings per Share	14
2.18	Trade and other receivables	14
2.19	Cash and cash equivalents	15
2.20	Share capital	15
2.21	Trade and other payables	15
2.22	Current and deferred income taxes	15
2.23	Employee benefits	16
2.24	Provisions	16
2.25	Revenue recognition	16
2.26	Leases	17
2.27	Dividend policy	18
2.28	The Environment	19
2.29	Fair value calculation	19
2.30	Investments under the Austral Law	20

NOTE 3 - FINANCIAL RISK MANAGEMENT	21
3.1.	Credit risk	21
3.2.	Liquidity risk	21
3.3.	Market risk	21
NOTE 4 - FINANCIAL INSTRUMENTS	22
NOTE 5 - SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS	23
NOTE 6 - CASH AND CASH EQUIVALENTS	25
NOTE 7- TRADE AND OTHER RECEIVABLES	25
NOTE 8 - BALANCES AND TRANSACTIONS WITH RELATED PARTIES	26
NOTE 9 - INVENTORIES	29
NOTE 10 - BIOLOGICAL ASSETS	30
NOTE 11 - OTHER CURRENT AND NON-CURRENTNON-FINANCIAL ASSETS	31
NOTE 12 - EQUITY METHOD INVESTMENTS	31
NOTE 13 - Current and non-current tax assets	32
NOTE 14 - INTANGIBLE ASSETS OTHER THAN GOODWILL	33
NOTE 15 - PROPERTY, PLANT AND EQUIPMENT	36
NOTE 16 - INCOME AND DEFERRED TAXES	38
NOTE 17 - OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES	39
NOTE 18 - LEASE LIABILITIES	44
NOTE 19 - TRADE AND OTHER PAYABLES	44
NOTE 20 - OTHER PROVISIONS	45
NOTE 21 - EMPLOYEE BENEFIT PROVISIONS	45
NOTE 22 - EQUITY	46
NOTE 23 - EARNINGS PER SHARE	47
NOTE 24 - OPERATING REVENUE	48
NOTE 25 - ADMINISTRATIVE EXPENSES	49
NOTE 26 - DISTRIBUTION COSTS	50
NOTE 27 - FINANCIAL INCOME AND COSTS	50
NOTE 28 - EXCHANGE DIFFERENCES	51
NOTE 29 - OTHER INCOME (LOSSES)	52
NOTE 30 - ASSETS AND LIABILITIES IN FOREIGN CURRENCIES	53
NOTE 31 - GUARANTEES AND CONTINGENCIES	55
NOTE 32 - SANCTIONS	55
NOTE 33 - THE ENVIRONMENT	56
NOTE 34 - SUBSEQUENT EVENTS	56

SALMONES CAMANCHACA S.A. AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2024 (UNAUDITED) AND DECEMBER 31, 2023 (AUDITED)

		As of March	As of December
Assets	Note	31, 2024	31, 2023
		ThUS$	ThUS$
Current assets
Cash and cash equivalents	6	13,632	24,269
Other financial assets, current		48	54
Other non-financial assets, current	11	10,554	17,654
Trade and other receivables, current	7	20,284	16,624
Related party receivables, current	8	57,431	37,142
Inventories	9	50,761	89,944
Biological assets	10	145,272	142,277
Current tax assets	13	1,159	1,254
Total current assets		299,141	329,218
Non-current assets
Other financial assets, non-current		27	27
Other non-financial assets, non-current	11	112	112
Recoverable rights, non-current	13	5,726	5,777
Equity method investments	12	3,587	3,809
Intangible assets other than goodwill	14	6,972	6,972
Property, plant, and equipment	15	124,319	124,603
Deferred tax assets	16	1,140	1,232
Total non-current assets		141,883	142,532
Total assets		441,024	471,750

The accompanying notes 1 to 34 are an integral part of these consolidated financial statements.

SALMONES CAMANCHACA S.A. AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2024 (UNAUDITED) AND DECEMBER 31, 2023 (AUDITED)

		As of March	As of December
Liabilities	Note	31, 2024	31, 2023
		ThUS$	ThUS$
Current liabilities
Other financial liabilities, current	17	30,460	27,721
Lease liabilities, current	18	406	441
Trade and other payables	19	71,402	94,540
Related party payables	8	2,186	6,730
Other provisions	20	5,216	8,042
Current tax liabilities	16	0	0
Employee benefit provisions, current	21	1,399	2,129
Total current liabilities		111,069	139,603
Non-current liabilities
Other financial liabilities, non-current	17	119,381	119,043
Lease liabilities, non-current	18	1,541	1,826
Trade and other payables, non-current		148	165
Related party payables, non-current	8	0	0
Deferred tax liabilities	16	14,765	15,347
Employee benefit provisions, non-current	21	802	902
Total non-current liabilities		136,637	137,283
Equity
Share capital	22	139,814	139,814
Share premium	22	2,286	2,286
Other reserves	22	21,725	22,021
Retained earnings	22	29,493	30,743
Total equity		193,318	194,864
Total equity and liabilities		441,024	471,750

The accompanying notes 1 to 34 are an integral part of these consolidated financial statements.

SALMONES CAMANCHACA S.A. AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)
				Actuarial
				gains and
				losses on				Equity
			Foreign	defined			Retained	attributable
			currency	benefit		Total	earnings	to owners of
	Share	Share	translation	plans	Other	other	(accumulated	the parent	Total
	capital	premium	reserve	reserve	reserves	reserves	losses)	company	equity
	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$
Opening balance as of January 1, 2024	139,814	2,286	(1,525)	31	23,515	22,021	30,743	194,864	194,864
Changes in equity
Comprehensive income
Net income for the period							(1,250)	(1,250)	(1,250)
Other comprehensive income			(406)	110		(296)		(296)	(296)
Closing balance as of March 31,
2024	139,814	2,286	(1,931)	141	23,515	21,725	29,493	193,318	193,318
				Actuarial
				gains and
				losses on				Equity
			Foreign	defined			Retained	attributable
			currency	benefit		Total	earnings	to owners of
	Share	Share	translation	plans	Other	other	(accumulated	the parent	Total
	capital	premium	reserve	reserve	reserves	reserves	losses)	company	equity
	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$
Opening balance, January 1, 2023	139,814	2,286	(1,455)	3	23,515	22,063	48,889	213,052	213,052
Changes in equity
Comprehensive income
Net income for the period							7,934	7,934	7,934
Other comprehensive income			236	15		251		251	251
Closing balance as of as of March 31,
2023	139,814	2,286	(1,219)	18	23,515	22,314	56,823	221,237	221,237

The accompanying notes 1 to 34 are an integral part of these consolidated financial statements.

SALMONES CAMANCHACA S.A. AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF NET INCOME BY FUNCTION

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(UNAUDITED)

		For the periods ended
	Note	March 31
		2024	2023
		ThUS$	ThUS$
Operating revenue	24	117,100	113,794
Cost of sales	9	(111,252)	(86,770)
Gross margin before fair value adjustments		5,848	27,024
Gain (loss) on fair value adjustments to biological assets	10	3,403	(7,456)
Administrative expenses	25	(2,499)	(2,715)
Distribution costs	26	(4,080)	(3,408)
Financial costs	27	(3,551)	(2,281)
Share of net income (losses) of equity method associates	12	184	280
Exchange differences	28	602	(289)
Other gains (losses)	29	(1,689)	(380)
Financial income	27	2	15
Net income (loss) before taxes		(1,780)	10,790
Income tax (expense) income	16	530	(2,856)
Net income (loss) from continuing operations		(1,250)	7,934
Net income (loss) from discontinued operations
Net income (loss) for the period		(1,250)	7,934
Net income (loss) attributable to:
Owners of the parent company		(1,250)	7,934
Non-controlling interests		-	-
Net income (loss) for the period		(1,250)	7,934
Earnings (loss) per share
Basic earnings (loss) per share (US$/share)	23	(0.0169)	0.1069
Earnings per share on discontinued operations (US$/share)		0.0000	0.0000
Basic earnings (loss) per share		(0.0169)	0.1069

The accompanying notes 1 to 34 are an integral part of these consolidated financial statements.

SALMONES CAMANCHACA S.A. AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(UNAUDITED)

For the periods ended March 31

2024	2023
ThUS$	ThUS$

Net income (loss) for the period	(1,250)	7,934
Components of other comprehensive income that will not be reclassified to
net income for the period, before taxes
Actuarial gains on defined benefit plans	150	20
Total other comprehensive income that will not be reclassified to net
income for the period, before taxes	150	20
Other comprehensive income that will be reclassified to net income for the
period, before taxes
Gain (loss) on foreign currency translations, before taxes	(406)	236
Gain (loss) from cash flow hedges, before taxes
Total other comprehensive income (loss) that will be reclassified to net
income,	(406)	236
before taxes
Other components of other comprehensive income (loss), before taxes	(256)	256
Income tax related to defined benefit pension plans in other comprehensive income	(40)	(5)
Total other comprehensive income (loss)	(296)	251
Total comprehensive income (loss)	(1,546)	8,185
Comprehensive income attributable to:
Owners of the parent company	(1,546)	8,185
Non-controlling interests	-	-
Total comprehensive income (loss)	(1,546)	8,185

The accompanying notes 1 to 34 are an integral part of these consolidated financial statements.

SALMONES CAMANCHACA S.A. AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS, DIRECT METHOD

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(UNAUDITED)

	For the period	For the period
	ended March	ended March
	31, 2024	31, 2023
	ThUS$	ThUS$
CASH FLOW FROM (USED BY) OPERATING ACTIVITIES
Proceeds
Proceeds from sales of goods and services	95,227	104,867
Payments
Payments to suppliers for goods and services	(92,227)	(98,686)
Payments to and on behalf of employees	(8,780)	(10,546)
Interest paid	(410)	-
Interest received	-	15
Net cash flow from (used by) operating activities	(6,190)	(4,350)
CASH FLOW FROM (USED BY) INVESTING ACTIVITIES
Proceeds from sales of property, plant and equipment	-	6
Purchases of property, plant and equipment	(3,852)	(5,859)
Net cash flow from (used by) investing activities	(3,852)	(5,853)
Net increase (decrease) in cash and cash equivalents,
before the effect of exchange rate changes	(10,042)	(10,203)
Effect of exchange rate changes on cash and
cash equivalents	(595)	485
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(10,637)	(9,718)
CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD	24,269	20,791
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	13,632	11,073

The accompanying notes 1 to 34 are an integral part of these consolidated financial statements.

SALMONES CAMANCHACA S.A. AND SUBSIDIARIES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

As of March 31, 2024

NOTE 1 - GENERAL INFORMATION

Salmones Camanchaca S.A. (hereinafter also the "Company") was formed when Camanchaca S.A. split on January 1, 2009. It was constituted as a private limited company in a public deed dated September 26, 2009. The purpose of the Company is breeding, producing, marketing and farming salmon and other species or organisms whose normal and most frequent environment is water, including research and development of salmonidae genetics, farming, cultivating, processing, producing and marketing sea-food.

The Company's registered office and principal offices are at Diego Portales 2000, Floor 13, Puerto Montt and its Chilean identification number (Rut) is 76,065,596-1.

On February 2, 2018, 19,800,000 shares representing 30% of the Company were placed at a price of Ch$ 3,268 per share, and these are now traded on the Santiago, Chile and the Oslo, Norway Stock Exchanges. Consequently, Salmones Camanchaca is now a publicly listed company registered on the Securities Registry of the Financial Market Commission (CMF), under registration number 1150.

The Company increased its capital during the fourth quarter of 2021, where the preferential subscription period concluded with more than 96% of the shares subscribed at a price of Ch$ 2,350. The process placed 8,193,660 of the 8,500,000 shares offered.

Control of the Company is exercised by Camanchaca S.A., which holds a 70.29% interest, the remaining 30% being held by third parties.

The Company farms Atlantic salmon and is fully integrated within its value chain, which includes the genetic development of breeders and all the facilities required to produce fry, smolts and marine grow-out sites; primary and value-added processing plants; and sales and marketing using its own own sales channels abroad or those belonging to its parent company, Camanchaca S.A., in the USA, Japan, Mexico, Spain, and an agent in China.

The main formats for selling frozen and fresh salmon are Trim C, D, and E, HG and HON fillets, in 4, 5, 6, and 8 oz. portions. The Company prepares its products in plants located in the Chilean Bio Bio and Los Lagos regions. They are mainly sold into the North American, Mexican, Japanese and Brazilian markets.

Since 2016 Salmones Camanchaca S.A. has participated in a joint venture partnership to produce and market trout. It has contributed aquaculture concessions to this partnership. The "Manager" of this joint venture is Caleta Bay S.A. and the other participant is Kabsa S.A. The results of the joint venture are divided equally among these three companies and are reflected in Other gains (losses) in the statement of net income by function.

Salmones Camanchaca produces Coho salmon, in order to take advantage of the estuary farming sites in the Tenth Region and complement the trout joint venture.

The consolidated financial statements of Salmones Camanchaca S.A. for the period ended March 31, 2024 were approved by the Board of Directors at a meeting held on May 15, 2024.

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