Biological problems and increased farming costs see Grieg profits dive

Editorial staff

Grieg Q2 operating profits crash 45 percent as biological problems take toll.

Norwegian salmon farming giant Grieg Seafood released its Q2 results on Friday.

The company reported a harvest volume of 22,645 metric tons, down slightly from 23,672 tons in the previous year.

Operational EBIT for the quarter, came in at NOK 547 million (€47 million), a percentage decrease of 45 percent from NOK 986 million (€87 million) reported in the same period last year.

The company faced biological challenges, especially in the Finnmark region, according to CEO Andreas Kvame.

Farming cost per kilogram was NOK 58.2 (€5.05), a 25 percent increase on the same period the previous year.

However, the company is hopeful of robust growth moving forward with comprehensive mitigation strategies now in place, notably against ISA and Spiro in Norway.

The weak krone and strong salmon market continue to bolster earnings and the company expects a harvest of 10,500 tonnes in Q3 2023 as it continues to prioritise biomass growth.

Grieg aiming to achieve a target harvest volume of a 78,000 metric tons for 2023, according to the report.

Meanwhile, the company continues to invest in sustainability, with 85 percent of its harvested salmon for the quarter now ASC certified.


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