Lerøy Seafood Group ASA Reports Strong Q1 Growth and Vision
Robust Financial Performance in Q1 2025 for Lerøy Seafood Group ASA
Lerøy Seafood Group ASA has showcased notable financial success with a consolidated operational EBIT of MNOK 1,049 for the first quarter, a marked increase from MNOK 842 during the same period last year. This financial uplift reflects a strong commitment to enhancing operational efficiencies across their segments.
Operational Advances in Fish Farming
Key Achievements in Farming
The Farming segment of Lerøy has reported operational EBIT figures of MNOK 789 for the quarter, highlighting a significant performance improvement. Despite a backdrop of lower spot prices for salmon and trout compared to the previous year, various factors have propelled this progress. These include advancements in fish genetics, improvements in roe and smolt quality, and the adoption of shielding technologies, all enhancing fish welfare and subsequently, financial outcomes.
Value-Added Processing and Distribution Growth
Record Performance in VAP S&D
The Value-Added Processing, Sales, and Distribution (VAP S&D) segment excelled, achieving an operational EBIT of MNOK 212 in the first quarter of 2025 and a remarkable MNOK 924 over the rolling 12 months, setting a new record. This is attributed to increased production volumes and strategic improvements that have amplified performance across their entities.
Challenges in the Wild Catch Segment
Seasonal Quota Pressures
While the Wild Catch segment managed to log an operational EBIT of MNOK 148, challenges persisted due to very low quotas during the high season. The price trends for 2025 are promising, yet the industry faces obstacles in fully utilizing industrial capacities until quotas stabilize at higher levels.
Advocating for Stable Industry Conditions
Government Proposals and Industry Impact
The recent 'Aquaculture White Paper' by the Norwegian government proposes a shift in licensing regimes, raising concerns about its potential impact. Lerøy Seafood Group ASA stands supportive of a thorough analysis before Parliament enacts substantial changes. As CEO Henning Beltestad pointed out, promising innovations concerning lice treatments have emerged, suggesting a bright potential for the industry.
Developing New Global Markets
Focus on Expanding Salmon and Trout Markets
Lerøy is actively pursuing global market development for Norwegian salmon and trout, particularly in growing markets such as China. The integrated value chain offers a competitive edge, with expectations that emerging markets will fuel further industry growth. The call for governmental support to ensure stable and advantageous market conditions is emphasized as pivotal for maintaining sustainable seafood production in Norway's coastal regions.
Frequently Asked Questions
What is Lerøy Seafood Group ASA's operational EBIT for Q1 2025?
The operational EBIT for Lerøy Seafood Group ASA in Q1 2025 stands at MNOK 1,049.
How has the Farming segment performed?
The Farming segment delivered an operational EBIT of MNOK 789, showcasing strong improvements despite lower spot prices for salmon and trout.
What are the achievements in the VAP S&D segment?
The VAP S&D segment reported an operational EBIT of MNOK 212 for Q1 2025 and MNOK 924 on a rolling 12-month basis, setting a new performance record.
What challenges does the Wild Catch segment face?
The Wild Catch segment has encountered significant challenges due to very low quotas, impacting the industry’s capacity utilization during the high season.
How is Lerøy addressing market growth for salmon and trout?
Lerøy is developing emerging markets, particularly in China, and emphasizes the need for government support to maintain stable and competitive conditions for the seafood industry.
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