Bakkafrost posts lower Q1 profit amid price pressure, but operational performance remains solid.
Bakkafrost reported an operational EBIT of DKK 505 million ($75.75 million/€65.65 million) for the first quarter of 2025, down from DKK 710 million ($106.50 million/€92.30 million) in the same period last year. The group posted a net result of DKK -6 million ($0.90 million/€0.78 million), compared to a profit of DKK 401 million ($60.15 million/€52.13 million) in Q1 2024.
While year-on-year profitability declined sharply, the result slightly exceeded consensus estimates, with analysts having expected an EBIT of DKK 496 million. The company also delivered solid underlying performance across its core operations, particularly in the Faroe Islands.
“The Faroese freshwater and marine operations delivered another quarter of strong biological performance, reflecting robust growth, effective lice management and consistent harvest of high-quality large fish,” said CEO Regin Jacobsen. “In Scotland, we continue to focus on scaling up the production of large, high-quality smolt, which remains central to transforming the performance and sustainability of our Scottish operations.”
The company harvested 25,200 tonnes gutted weight (tgw) in the quarter, up from 21,557 tgw in Q1 2024. Of this, 18,914 tgw was harvested in the Faroe Islands and 6,286 tgw in Scotland.
Farming operations in the Faroe Islands generated EBIT of DKK 287 million ($43.05 million/€37.31 million), down from DKK 472 million ($70.80 million/€61.36 million) a year earlier. EBIT per kg fell to DKK 15.15 ($2.27/€1.97), from DKK 33.03 ($4.95/€4.29), last year.
The Scottish farming segment posted an EBIT of DKK 16 million ($2.40 million/€2.08 million), with EBIT per kg of DKK 2.53 ($0.38/€0.33), or NOK 3.95. Incident-based costs in Scotland were DKK 8 million ($1.20 million/€1.04 million), down from DKK 18 million ($2.70 million/€2.34 million) last year.
Smolt transfers rose slightly to 3.8 million in the quarter. The average smolt weight was 421g in the Faroe Islands, up 10% year-on-year, and 232g in Scotland, up 80%.
Despite lower prices, the company reported operational gains in efficiency and scale. The Freshwater FO segment posted an EBIT per kg transferred smolt of DKK 42.11 ($6.32/€5.47), or NOK 65.75, up from DKK 25.06 ($3.76/€3.26). The Freshwater SCT segment returned to profitability, with EBIT per kg of DKK 12.33 ($1.85/€1.60), or NOK 19.26, compared to a loss of DKK -178.98 per kg last year.
Lower salmon prices weighed on margins across the business. Reference prices for 4–5kg superior salmon were down 18.1% in NOK terms from Q1 2024. According to Kontali Analyse, global supply rose by 5.3%, or 8.4% excluding inventory movements.
The FOF segment (fishmeal, oil and feed) reported EBITDA of DKK 71 million ($10.65 million/€9.23 million), down from DKK 183 million ($27.45 million/€23.79 million). Feed sales rose to 31,338 tonnes from 27,046 tonnes.
Sales and Other segments produced an EBIT of DKK 42 million ($6.30 million/€5.46 million), up from a loss of DKK 2 million a year earlier. Segment revenue was DKK 2,962 million ($444.30 million/€385.06 million), though EBIT margin remained slightly negative.
The board has approved a dividend of DKK 8.44 ($1.27/€1.10) per share, to be paid on or around 21 May 2025, corresponding to a total payout of DKK 501 million ($75.15 million/€65.13 million).
Bakkafrost reiterated its full-year harvest guidance of 97,000 tonnes gutted weight — 77,000 tonnes in the Faroe Islands and 20,000 tonnes in Scotland — and said its smolt transfer targets for 2025 remain on track. The company is continuing with its DKK 6.3 billion ($945 million/€819 million) investment programme, although some Scottish hatchery and processing projects have been deferred, reducing expected capex by DKK 800 million ($120 million/€104 million) over 2024–2025.
While market conditions remain challenging, the company said it remains focused on maintaining biological strength, operational efficiency, and long-term capacity growth.