SalMar Q1: Lower volumes weigh on earnings, but biomass growth supports 2025 outlook
SalMar reported a decline in earnings for the first quarter of 2025, impacted by lower harvest volumes, high levels of downgraded fish, and late-cycle harvesting. However, the company pointed to strong biological performance in the sea and a record-high biomass entering Q2 as indicators of improved volumes for the remainder of the year.
Group operational EBIT for the quarter was NOK 798 million ($76.61 million/€68.63 million), with a harvest volume of 42,700 tonnes and an operational EBIT per kilogram of NOK 18.70 ($1.80/€1.61). The Norway segment alone delivered an operational EBIT of NOK 852 million ($81.79 million/€73.27 million) on a harvest of 40,400 tonnes, or NOK 21.10 ($2.03/€1.81) per kilogram.
The results reflect a strategic decision to delay harvesting to build biomass, but this led to a concentration of harvests late in the quarter and a higher share of downgraded fish. SalMar noted that some fish were harvested early due to welfare considerations, resulting in lower average harvest weights and reduced price achievement.
In its update, the company also reported continued positive contribution from its Sales and Industry segment, driven in part by contract coverage. Meanwhile, Icelandic Salmon harvested low volumes as expected, with costs remaining high. Scottish Sea Farms delivered another strong quarter, supported by increased harvest volumes, high harvest weights, and good biological conditions across all regions.
“In short, we are pleased with the development in growth and survival in the sea, but financially it is unfortunately weak as a result of harvesting late in the period and the quality of harvested fish in the quarter,” said SalMar CEO Frode Arntsen.
Strategic expansion in Norway
SalMar continued to consolidate its position in Norway with two key transactions. In February, the company completed its acquisition of a controlling stake in AS Knutshaugfisk, which holds licences totalling 3,466 tonnes MTB and operates four farming sites in production area 6, Central Norway.
In April, SalMar also confirmed a planned merger between SalMar Farming AS and Wilsgård AS, in which it has held a 37.5% interest since the acquisition of NTS and subsequent merger with Norway Royal Salmon in 2022. Wilsgård has licences totalling 5,844 tonnes MAB across production areas 10 and 11 in Northern Norway and is a long-established operator on Senja.
“Wilsgård is a well-run company that, like SalMar, operates aquaculture in one of the best areas in the world for salmon production,” Arntsen said. “This merger will not only strengthen our position in the region, but also contribute to increased operational efficiency, cost reductions and financial robustness.”
The merger is expected to complete during the summer of 2025, pending regulatory approvals.
Outlook
SalMar reaffirmed its full-year 2025 harvest volume guidance of 294,000 tonnes for the group, representing a 17% increase from 2024. This includes:
256,000 tonnes from Norway
7,000 tonnes from SalMar Ocean
15,000 tonnes from Iceland
32,000 tonnes from Scottish Sea Farms (100% basis)
The company noted strong market demand despite global uncertainty and increased supply in the first half of 2025. It expects global supply growth to ease in the second half of the year.
SalMar’s full Q1 2025 report and presentation are available at www.salmar.no. CEO Frode Arntsen and CFO Ulrik Steinvik presented the results at 08:00 CET today at Hotel Continental, Oslo, with a live webcast for investors and analysts.