Leroy Seafood Group Reports Strong Q2 Performance
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Continuous Progress in Biological Performance
Lerøy Seafood Group ASA reports a consolidated operational EBIT of NOK 906 million for the second quarter.
CEO Henning Beltestad comments: "The positive trend in biological performance has continued into the second quarter, and we are performing well despite falling salmon prices. The number of lice treatments has been significantly reduced, and growth and survival rates have substantially increased compared to the average over the past five years."
Almost five years ago, the company launched a significant project to explore new technologies aimed at addressing one of the industry's biggest challenges: sea lice and the related treatments affecting fish welfare. Recently, the first salmon was harvested from submerged cages, leading to promising results and expected to be a growth driver for Lerøy going forward, notes Beltestad.
Scottish Seafarms also delivered significant biological improvements, contributing to a substantial increase in profit compared to the previous year.
Record High Earnings in VAP S&D Segment
The segment for value-added processing, sales, and distribution (VAP S&D) reported an operational EBIT of NOK 217 million in Q2 2024. "The positive development in the segment continues, driven by operational improvements and increased utilization of our integrated value chain," says Beltestad.
"We are a significant food producer, well-positioned, and we feel a great responsibility to contribute to increased seafood consumption per the updated dietary guidelines from health authorities, emphasizing the consumption of more seafood," he continues.
Challenges in Wild Catch Due to Quota Reductions
The Wild Catch segment reported an operational EBIT of NOK -4 million, significantly lower than the same quarter last year. "The outlook for wild catch is very challenging due to significant quota reductions in recent years, and further cuts are anticipated for 2025. This trend poses challenges for this segment of our business," points out Beltestad.
Aiming for Strategic Goals through Operational Excellence
While lower salmon prices affected the market in the second quarter, the long-term outlook remains optimistic. The company is on track to achieve its ambitious 2025 goals for both Farming and VAP S&D. Focus areas include improving roe and smolt quality, implementing new farming technology, and optimizing processes. There is also an increasing demand for an integrated value chain with a strong sustainability profile, indicating potential for increased earnings in European downstream operations, concludes Beltestad.
For inquiries, please contact CEO Henning Beltestad or CFO Sjur S. Malm.
About Lerøy Seafood Group
Lerøy Seafood Group is a global seafood group headquartered in Bergen, employing around 6,000 people who handle between 350,000 and 400,000 tons of seafood annually, which equates to about 5 million meals every day. The company operates a vertically integrated value chain for redfish and whitefish and has significant third-party product activity.
The Group's core values of being open, honest, responsible, and creative underpin its activities, with a mission to create the world's most efficient and sustainable seafood value chain. The target for annual return on capital employed (ROCE) is set at 18%, and the group has ambitious sustainability goals, including a 46% reduction in greenhouse gas emissions by 2030.
To ensure consumer food safety, Lerøy actively works across all stages of the value chain. As a fully integrated seafood supplier, it can maintain quality assurance throughout the production process, meeting the market's stringent requirements for traceability, food safety, product quality, cost-effectiveness, sustainability, and continuous delivery.
Frequently Asked Questions
What is the operational EBIT reported by Lerøy Seafood Group for Q2?
The operational EBIT reported for Q2 2024 is NOK 906 million.
What technologies is Lerøy Seafood Group exploring to combat sea lice?
Lerøy is exploring new technologies including the use of submerged cages, which have shown promising results.
How much operational EBIT did the VAP S&D segment achieve?
The VAP S&D segment achieved an operational EBIT of NOK 217 million in Q2 2024.
What challenges does the Wild Catch segment face?
The Wild Catch segment is facing challenges due to significant quota reductions, leading to an operational EBIT of NOK -4 million.
What are Lerøy Seafood Group's sustainability goals?
Lerøy aims for a 46% reduction in greenhouse gas emissions by 2030 as part of its sustainability goals.
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