Ongoing Advancements in Biological Performance
Lerøy Seafood Group ASA has announced a consolidated operational EBIT of NOK 906 million for the second quarter.
CEO Henning Beltestad remarked, "The positive trend in biological performance has continued into the second quarter, and we are performing well despite declining salmon prices. We've significantly reduced the number of lice treatments, and our growth and survival rates have greatly improved compared to the average over the past five years."
Nearly five years ago, the company initiated a major project to explore innovative technologies aimed at tackling one of the industry's most pressing issues: sea lice and the associated treatments that impact fish welfare. Recently, the first salmon was harvested from submerged cages, yielding promising results that are expected to drive growth for Lerøy in the future, according to Beltestad.
Scottish Seafarms has also made notable biological advancements, leading to a considerable profit increase compared to the previous year.
Record Earnings in the VAP S&D Segment
The value-added processing, sales, and distribution (VAP S&D) segment reported an operational EBIT of NOK 217 million in Q2 2024. "The positive trend in this segment continues, fueled by operational enhancements and better utilization of our integrated value chain," Beltestad stated.
"As a significant food producer, we are well-positioned and feel a strong responsibility to promote increased seafood consumption in line with updated dietary guidelines from health authorities, which emphasize eating more seafood," he added.
Wild Catch Faces Challenges from Quota Reductions
The Wild Catch segment reported an operational EBIT of NOK -4 million, a significant decrease compared to the same quarter last year. "The outlook for wild catch is quite challenging due to substantial quota reductions in recent years, with further cuts expected for 2025. This trend presents difficulties for this segment of our business," Beltestad pointed out.
Striving for Strategic Goals through Operational Excellence
Although lower salmon prices impacted the market in the second quarter, the long-term outlook remains positive. The company is on track to meet its ambitious 2025 objectives for both Farming and VAP S&D. Key focus areas include enhancing roe and smolt quality, adopting new farming technologies, and optimizing processes. There's a growing demand for an integrated value chain with a strong sustainability profile, which suggests potential for increased earnings in European downstream operations, Beltestad concluded.
For further inquiries, please reach out to CEO Henning Beltestad or CFO Sjur S. Malm.
About Lerøy Seafood Group
Lerøy Seafood Group is a global seafood enterprise based in Bergen, employing approximately 6,000 individuals who handle between 350,000 and 400,000 tons of seafood each year, which translates to around 5 million meals daily. The company operates a vertically integrated value chain for both redfish and whitefish and has a significant presence in third-party product activities.
The Group's core values—openness, honesty, responsibility, and creativity—guide its operations, with a mission to establish 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 food safety for consumers, Lerøy actively engages in all stages of the value chain. As a fully integrated seafood supplier, the company maintains quality assurance throughout the production process, meeting the market's rigorous demands for traceability, food safety, product quality, cost-effectiveness, sustainability, and consistent 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 innovative technologies, including the use of submerged cages, which have demonstrated 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 confronting challenges due to significant quota reductions, resulting in 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 objectives.