Industrial fishing company China Fishery Group said group revenue declined marginally by 3.2% from US$104.8 million ($148 million) to US$101.4 million for the first quarter of the financial year ending 28 September 2010 (1QFY2010).

The group’s trawling operations achieved an increase of 18.2% in revenue from US$74.6 million to US$88.2 million due mainly to increased catch from un-utilised fishing quota from previous quarters.

Sales volume for fishmeal decreased 81% from 32,800 tonnes to 6,200 tonnes due to lower inventory carried forward from 4QFY2009. The high quarter-end inventory was due to the timing effects of sales and logistics. Fishmeal production remained stable at 33,400 tonnes (1QFY2009: 33,700 tonnes). Significantly higher fishmeal prices made up for the reduction in sales volume resulting in a smaller reduction in fishmeal revenue to US$13.3 million.

Although the group incurred additional operating expenses of US$5 million attributable to the South Pacific expansion, gross profit was up 32.2% to US$33.8 million while net profit was up 12.5% to US$18.3 million in 1QFY2010 from US$16.2 million while net profit margin improved from 15.5% to 18.0%.

In line with the increase in net profit, earnings per share rose to 2.12 US cents from 1.89 US cents.