Bakkafrost reports steady progress in Scotland despite price pressure and incident costs
Bakkafrost’s Scottish operations delivered an operational EBIT of DKK 71 million ($10.65 million/€9.23 million) in the first quarter of 2025, down from DKK 84 million ($12.60 million/€10.92 million) a year earlier, reflecting lower salmon prices and modest harvest volumes.
The Scottish farming segment harvested 6,286 tonnes gutted weight (tgw) in the quarter, down from 7,263 tgw in Q1 2024. EBIT per kg fell to DKK 2.53 ($0.38/€0.33), equivalent to NOK 3.95, from DKK 3.35 ($0.50/€0.44), or NOK 5.13, the previous year. Incident-based costs totalled DKK 8 million ($1.20 million/€1.04 million), a reduction from DKK 18 million ($2.70 million/€2.34 million) in the same quarter last year.
CEO Regin Jacobsen said the company was making “steady progress” in transitioning the Scottish operation toward higher-quality smolt, a strategy he described as central to improving long-term performance.
“Our strategic focus remains strongly on a successful transition to large, high-quality smolt at Applecross,” Jacobsen said. “This remains central to fundamentally transforming our Scottish aquaculture operations and improving long-term sustainability and profitability.”
The average weight of transferred smolt from Applecross in Q1 2025 was 232g, up 80% year-on-year. Across all Scottish sites, the average smolt weight rose 40% to 169g. Bakkafrost expects to transfer around 10 million smolts in Scotland this year, with average weights exceeding 200g — a significant increase from 6 million smolts at an average of 109g in 2024.
Freshwater SCT, the freshwater segment in Scotland, returned to profitability in the quarter with an operational EBIT of DKK 1 million ($0.15 million/€0.13 million), up from a loss of DKK 34 million ($5.10 million/€4.42 million) in Q1 2024. EBIT per kg of smolt transferred rose to DKK 12.33 ($1.85/€1.60), equivalent to NOK 19.26, from a loss of DKK -178.98 (NOK -274.00) a year earlier.
The company confirmed that Applecross module 5 is now operational, bringing Scottish smolt production capacity to 3,500 tonnes annually. The ongoing ramp-up is intended to make Bakkafrost self-sufficient in Scotland with around 14 million high-quality smolt of 250g.
The next construction phases, Applecross modules 6 and 7, are focused on enhancing biosecurity and operational flexibility.
For the full year, Bakkafrost expects to harvest 20,000 tonnes gutted weight in Scotland. The quarterly harvest profile is weighted toward the first half of the year, with 31% of volume expected in Q1, 36% in Q2, and just 16% in each of Q3 and Q4, as the company executes its de-risking strategy by emptying higher-risk sites ahead of the autumn.
While lower prices and smaller volumes weighed on quarterly earnings, management remains confident that the shift toward larger smolt and improved freshwater performance will reduce biological risk and improve productivity over time. Scottish operations are being modelled on the company’s Faroe Islands structure, with longer-term investments focused on hatchery infrastructure, site development, and service vessel capacity.
Bakkafrost has adjusted its broader 2024–2028 investment plan to reflect a reordering of priorities in Scotland. The second planned hatchery at Fairlie and a new processing facility have been delayed, reducing projected capex for 2024–2025 by DKK 800 million ($120 million/€104 million).
While challenges remain, including weaker market prices and ongoing biological risk, the company says its Scottish turnaround remains on track.