Takeover target Huon Aquaculture tumbled to a $128.1 million loss in 2020-21, belted by falling international prices and a spike in air freight costs.
The result made the previous year's wafer thin after tax profit of $4.9 million look tasty.
The Tasmanian-based salmon producer in February booked a $113.9 million impairment charge based on cashflow projections factoring in lower prices, higher freight costs and global economic uncertainty.
Even without the impairment charge, the company notched an operating loss of $36.9 million.
On the plus side, revenue increased by 24 per cent to $426.4 million and the company reported strong progress in the Australian retail market.
It said it achieved record domestic sales through increased marketing, the launch of new ranges of value added products and contract "wins".
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Volumes sold into the Australian retail market grew by 63 per cent.
Huon said it would focus on growing the market and locking in contracted sales in the current financial year.
It said international salmon prices increased by 36 per cent in the last four months of the financial year, with indications the price would remain at that level in the current year.
Huon said there would be continued focus on productivity improvements.
It intended to keep the harvest at about the same level for the next two years given ongoing coronavirus pandemic-related constraints in the international market
"Huon remains confident that the underlying fundamentals within the global salmon industry of a long-term structural shortfall in supply remain in place and the business has the capacity to meet the increasing demand as the global economy emerges from the pandemic," it said.
Chairman Neil Kearney and managing director and chief executive Peter Bender said the business had faced some of the most significant challenges in its history in the past 18 months.
"The temporary closure of markets due to the coronavirus pandemic and the ongoing disruption to international trade and the grounding of international flights have been costly," they said.
Global meat giant JBS is aiming to take over Huon, a move supported by the Huon board subject to conditions including the absence of a superior proposal.
Mining magnate Andrew "Twiggy" Forrest - a significant Huon shareholder - has challenged JBS to commit to adopt strong animal welfare standards.