The World’s second largest producer of farmed Atlantic salmon, SalMar has reported a solid operational performance in the second quarter of 2024, despite facing ongoing challenges from the harsh winter conditions earlier in the year.
The company’s operational EBIT for Norway reached NOK 1,466 million ($137.4 million/€124.6 million), with a harvest volume of 44,100 tonnes, translating to an operational EBIT per kilogram of NOK 33.2 ($3.11/€2.82). For the Group as a whole, operational EBIT stood at NOK 1,393 million ($130.0 million/€118.4 million), with a slightly higher harvest volume of 44,800 tonnes and an EBIT per kilogram of NOK 31.1 ($2.92/€2.65).
Improved Biological Performance
The Fish Farming segment in Norway showed signs of improved biological performance; however, severe winter weather continued to impact the quality and price of the produce, particularly in Northern Norway. Despite these challenges, SalMar’s sales and industry operations maintained efficiency and flexibility, although high spot prices and a 46 percent contract share led to a negative contribution.
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Icelandic and Scottish Operations
Icelandic Salmon faced continued biological challenges during the quarter, resulting in high costs and low harvest volumes, adversely affecting financial results. In contrast, Scottish Sea Farms reported a strong quarter with increased harvest volumes, improved fish weights, and strong biological health across all regions.
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Strategic Initiatives and Sustainable Growth
SalMar has taken several strategic steps to ensure sustainable growth. The company acquired additional production capacity through a government auction in Norway and was granted 10,000 tons of Maximum Allowable Biomass (MAB) in Iceland. SalMar was recognized by Time magazine in June 2024 as one of the world’s most sustainable companies. This recognition aligns with the company’s efforts to integrate sustainability into its financial operations, linking its revolving credit facility (RCF) and term loan to specific ESG performance indicators.
Innovation and R&D
In March 2024, SalMar launched the Salmon Living Lab, an innovative R&D initiative in partnership with Cargill, aimed at developing more sustainable solutions for salmon farming.
Outlook and Guidance
SalMar has maintained its harvest guidance for Norway at 237,000 tonnes, with additional contributions of 7,000 tonnes from SalMar Aker Ocean and 37,000 tonnes from Scotland. However, the forecast for Iceland has been adjusted down to 13,000 tonnes.
CEO Frode Arntsen emphasized the company’s readiness to continue its growth trajectory, highlighting ongoing efforts to enhance operational control and efficiency across the entire value chain. “We celebrate our achievements, but there is no time to rest,” Arntsen concluded.
