Scottish smoked salmon and shellfish producer Associated Seafoods reported an operating loss and an increasing net loss in 2018.

The firm posted an operating loss of £188,109 (€209,448/$238,413), compared with an operating profit of £276,811 (€308,212/$350,836) the year earlier. Net loss amounted to £123,598 (€137,619/$156,651) in 2018, from a loss of £34,110 (€37,979/$43,232) the year prior.

This is despite a 23.4 percent increase in sales year-on-year, which reached £26.9 million (€30 million/$34.1 million) in 2018.

The fall is due to challenges presented by increasing prices that are not being passed to consumers by retailers and processors, the company said.