Yahoo Finance Soaring salmon prices slice profits at Wasabi
Wasabi has blamed soaring salmon prices for its pre-tax profits tumbling from £2m to £769,598 last year.
Despite the jump in salmon costs, Wasabi grew sales sales from £80m to £98m in 2016 after increasing the number of branches from 49 to 55, including a second store in New York.
Wholesale salmon prices have soared by as much as 50pc in the past year after global supplies were hit by an infestation of sea lice.
“Unlike many businesses, Wasabi decided not to pass on the increased costs of salmon to our customers, preferring instead to absorb the additional costs ourselves”, said Wasabit finance boss Scott Etherington. “The salmon wholesale market is notoriously volatile but we are very confident that Wasabi is in excellent shape to ride out any future price fluctuations during the remainder of 2017.”
The chain which specialises in bento boxes and Katsu curry pots is also expanding its Korean Kimchee brand and last month launched Asian-inspired bakery, Soboro Bakery, in Cambridge.
Wasabi, which was started by food market trader Dong Hyun Kim, in 2003, recently signed a trial with Marks & Spencer to open five of sushi bars inside the retailer’s larger shops by the end of this year
