Seafood group Tassal expects a growing appetite for salmon and favourable prices to drive earnings growth in the year ahead.
Tassal's annual profit dropped three per cent in the year to 30 to $48.5 million, due to a smaller increase in the value of its fish stocks than in the previous year.
But the company's operating profit was up eight per cent to $37.9 million as salmon sales continued to rise and Tassal benefited from its acquisition of supplier De Costi Seafoods.
Tassal expects its earnings to improve in 2016/17 as it focuses on driving an increase in Australian salmon and seafood consumption, while maximising returns from its operations and assets.
"Current favourable salmon pricing in wholesale and export markets is forecast to continue in FY2017," chief executive Mark Ryan said.
"The board expects that Tassal will be able to continue its growth trajectory and generate increased earnings in FY2017."
Also, a lower level of forecast sales being locked into retail contracts would give Tassal a chance to allow salmon stock to recover and build up in size.
Tassal shares were up 17 cents, or 4.3 per cent, at $4.12 at 1540 AEST.
LOWER FISH VALUE WEIGHS ON TASSAL'S PROFIT
* Annual profit down 3pct to $48.5m
* Revenue up 39pct to $431m
* Final dividend up half a cent to 7.5 cents, fully franked
