Grieg lifts Q1 guidance on Norwegian outperformance, but CMS and restructuring drag on wider group.
Grieg Seafood said on Thursday that its first-quarter performance would beat previous forecasts in Rogaland thanks to lower costs and strong harvest volumes, but flagged weaker results across other regions and fresh biological setbacks in Finnmark.
The Bergen-based salmon producer said farming costs in Rogaland came in 12.5% below guidance, driven by better-than-expected biological conditions and higher output from a site harvested during the quarter.
The upgrade helped offset underperformance in Finnmark, British Columbia and Newfoundland, where results were dragged down by weak volumes, disease, and one-off costs.
In Finnmark, early harvesting of cardiomyopathy syndrome (CMS)-affected fish began in March, with the company noting “elevated farming costs” linked to an average harvest weight of just 1.1kg. The issue, which will continue to affect operations in the second quarter, is the latest in a series of biological challenges facing salmon farmers in northern Norway. Farming costs in Finnmark were still 4.5% below internal guidance, but failed to meet market expectations.
Operations in British Columbia were limited to broodfish harvests, inflating farming costs per kilo, while Newfoundland results were hit by NOK 48 million in one-off charges related to winding down the PSA construction site — a project previously positioned as strategic.
Grieg also disclosed NOK 20 million in restructuring costs tied to staff reductions at head office, raising further questions about cost control and profitability. The update comes just weeks after the company promised shareholders it would improve margins through tighter discipline.
Full Q1 results, originally due 22 May, have been postponed to 27 May. No explanation was offered for the change in timing.