AKVA Group ASA's Bold Vision for Future Growth and Profitability
AKVA Group ASA's Ambitious Goals for Revenue and Growth
AKVA Group ASA is on a mission for aggressive growth as it reveals its revenue target of NOK 5 billion and a robust EBIT target of 9% for 2027. The company showcased these goals during its recent Capital Markets Day, cementing its strategy to not only reach NOK 7 billion by 2030 but also to enhance profitability along the way.
Transforming the Salmon Farming Industry
The salmon farming sector has experienced a stagnation in production during the current decade. This trend has led to a dire need for investment in new technologies and top-notch equipment, which are essential for driving long-term growth. AKVA, being a leading innovator in this field, is set to capitalize on this opportunity for growth across its three primary business segments: Sea Based, Land Based, and Digital.
Innovative Solutions for Enhanced Efficiency
CEO Knut Nesse emphasized the potential of their products and technologies. Solutions like the Nautilus deep farming concept are aimed at tackling the louse problem in marine environments, while their advanced RAS (Recirculating Aquaculture Systems) technology is instrumental in optimizing growth in smolt, post-smolt, and grow-out facilities. Additionally, AKVA's digital AI solutions are expected to revolutionize the industry through intelligent and automated precision fish farming.
Significant Financial Projections
In 2024, AKVA's revenue reached NOK 3.5 billion, and the company has already set an ambitious guidance of NOK 4 billion for 2025. By aiming for NOK 5 billion in 2027 and NOK 7 billion by 2030, AKVA is set to effectively double its revenue within a six-year span. The company is also focusing on improving its EBIT margin from 5% in 2024 to 6% in 2025, with aspirations of reaching a remarkable 9% EBIT in 2027 and more than 10% in 2030.
Strategic Growth in Key Segments
The revenue targets set for each business segment are particularly ambitious. In the Sea Based segment, AKVA aims to increase revenues from NOK 2.8 billion in 2024 to NOK 3.4 billion by 2027, with the EBITDA margin advancing from 12% to 14%. The Land Based segment's target is to more than double its revenue from NOK 0.6 billion in 2024 to NOK 1.4 billion in 2027, significantly improving the EBITDA margin from 4% to 10% thanks to high operational leverage. Furthermore, the Digital segment anticipates revenue growth from NOK 137 million in 2024 to near NOK 250 million in 2027, with an impressive EBITDA margin increase from 22% towards 40%.
Commitment to Shareholders
In a bid to strengthen its financial position, AKVA has made substantial investments over the past years. CFO Ronny Meinkøhn articulated the company’s commitment to delivering long-term value through share price appreciation and competitive returns. With a solid financial foundation and growth plans steering towards a capital-light approach, the company looks forward to substantially enhancing its dividend capacity in the years ahead.
Revised Dividend Policy
The Board of AKVA has established a revised dividend policy intending to return between 40% and 50% of cash flow to shareholders post-investments. This commitment will be guided by the company's financial requirements and the overall market landscape.
Capital Markets Day Insights
AKVA’s Capital Markets Day kicked off at 11:00 CET, signaling an important milestone for the company. The formal program commenced promptly at noon, outlining their strategic ambitions and detailed growth plans. Presentations from this event will be accessible online, providing valuable insights for shareholders and stakeholders alike.
Frequently Asked Questions
What are AKVA's revenue targets for 2027 and 2030?
AKVA targets NOK 5 billion in revenue for 2027 and aims to achieve NOK 7 billion by 2030.
How is AKVA improving profitability?
AKVA plans to enhance its EBIT margin from 5% in 2024 to over 10% by 2030 through strategic investments and operational efficiencies.
What solutions is AKVA introducing for the salmon farming industry?
AKVA's solutions include the Nautilus deep farming concept for sea lice management and advanced RAS technology for land-based growth.
What is AKVA's dividend policy?
AKVA intends to return between 40% and 50% of cash flow to shareholders as dividends, depending on market conditions and capital needs.
How has AKVA's financial situation changed?
AKVA has improved its financial stability through strategic investments, positioning itself for sustainable long-term growth and increased dividend capacity.
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