SalMar falls short of expectations amid winter storm challenges

Editorial Staff

‘We were once again reminded of the importance of working with the forces of nature,’ says CEO.

One of the world’s largest salmon farming companies, SalMar, faced a challenging first quarter marked by harsh winter conditions, extreme weather events, and persistent jellyfish attacks, impacting its operations in Norway and overall financial performance.

Key highlights from the first quarter results include:

  • Operational EBIT for Norway stood at NOK 1.546 billion ($142 million), with a harvest volume of 45,400 tons and operational EBIT per kg at NOK 34.1.
  • The Group’s operational EBIT was NOK 1.512 billion ($140 million), with a harvest volume of 52,900 tons and operational EBIT per kg at NOK 28.6.
  • The launch of the Salmon Living Lab innovation and R&D center garnered significant interest from potential partners.

SalMar had been expected to report an operational operating result of NOK 1.708 billion ($157 million) for the quarter, according to estimates obtained by TDN Direkt.

SalMar’s CEO, Frode Arntsen, has acknowledged the challenging quarter in an update to the market on Tuesday.

“The first quarter was challenging in many ways, and we were once again reminded of the importance of working with the forces of nature. Our ability to understand biology and the environment is of great importance for our operational and financial performance. That is why we believe so strongly that our many improvement initiatives, including Salmon Living Lab, are important for the continued success of our company and our industry as a whole,” said Arntsen .

Segment updates:

  • Farming segments in Norway, was significantly impacted by the jellyfish attacks and extreme weather events this winter. Low superior share and low average harvest weights, in particular in Northern Norway, impacted both cost and price achievements.
  • Sales and Industry continued to show strength in its flexible operational setup, handling volumes affected by biological challenges.  The contract share was 39 per cent, with negative contribution.
  • Icelandic Salmon is affected by high cost due to biological challenges.
  • SalMar Aker Ocean harvested from both its two semi-offshore projects during the quarter where strong biological performance once again gives confidence for further potential.
  • Scottish Sea Farms had a solid quarter, with significantly improved results and good biological status in all regions.

Volume guidance and outlook:

The volume guidance remains unchanged at 237,000 tons in Norway ,7,000 tons from SalMar Aker Ocean, 15,000 tons in Iceland and 37,000 tons in Scotland.

SalMar remains optimistic about the future of the aquaculture industry, committed to sustainable growth and value creation.

“In SalMar we have a positive view on the future of the aquaculture industry, and we are committed to grow our business sustainably and create value for society and our various stakeholders. We see significant untapped potential for further growth in the industry and want to lead the development further. Because food does not go out of style, the world needs more healthy and nutritious food,” Arntsen concluded

The complete report and presentation for the first quarter will be presented by SalMar’s CEO and CFO at Hotel Continental in Oslo, with a webcast available on the company’s website.


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