Lerøy Seafood Group ASA Shows Profit Growth with Innovations
Operational Improvements Drive Record Quarterly Results
Lerøy Seafood Group ASA has reported an impressive operational EBIT of MNOK 799 for the most recent quarter, showcasing significant enhancements in their operations. The Farming segment has been a standout performer, achieving an operational EBIT of MNOK 594. As part of a strategic plan launched at their 2022 Capital Markets Day, the company has made remarkable progress which is now reflected in their financial results. In this quarter, Lerøy reached its highest biomass production at sea in its history, along with a substantial increase in harvest volumes and near-total license utilization. CEO Henning Beltestad proudly highlights the improvements seen at Scottish Seafarms as well, noting the positive developments across the board.
Consistent Returns for Shareholders
With a focus on maintaining shareholder value, Lerøy's board plans to propose a dividend of NOK 2.5 per share at the upcoming Annual General Meeting. This amount remains consistent with the previous year, demonstrating the company's commitment to providing stable returns as it consolidates its operational gains.
Innovative Technologies Supporting Fish Welfare
Advancements in shielding technology have played a crucial role in enhancing fish welfare within Lerøy’s farming practices. The company has successfully reduced lice treatment frequency in submerged cages by 85% compared to conventional methods. This significant breakthrough not only promotes the health of the fish but also leads to better economic outcomes. Lerøy plans to continue investing in this technology, with an allocation of MNOK 500 aimed at integrating it into their operations, anticipating that around 40% of their harvested salmon will utilize this innovative approach in the near future.
Record Earnings in Value-Added Products
The segment dedicated to Value-Added Products and Sales, or VAP S&D, achieved noteworthy success, reporting an operational EBIT of MNOK 275 for the last quarter and a remarkable MNOK 888 for the entire year. This segment's growth has been driven chiefly by operational enhancements and a raised level of utilization of the company’s integrated value chain, bringing Lerøy to new heights in profitability.
Challenges Within the Wild Catch Sector
The Wild Catch segment has faced its own set of challenges during this financial period, reporting an operational EBIT of only MNOK 6 for the quarter and MNOK 130 over the year. Despite the dedication and relentless efforts of their 1,000 employees in this division to maximize the value despite historically low quota levels, the challenges remain significant. CEO Beltestad acknowledges the hard work of the Wild Catch team as they navigate these unprecedented times.
Commitment to Sustainability and Circular Economy
Lerøy’s environmental initiatives are at the forefront of their operational strategy, with a goal to cut greenhouse gas emissions by 46% by 2030. The company is tackling its carbon footprint, particularly through fish feed, which is identified as a primary area of impact. Their partnership with feed supplier EWOS aims to utilize by-products from European chicken production as fish feed ingredients, potentially reducing the carbon footprint of their feed by as much as 16%. This initiative exemplifies their commitment to implementing circular economy principles.
Aiming for Ambitious 2025 Goals
Lerøy is eagerly working towards ambitious goals set for 2025. Their long-term focus on enhancing genetics, smolt quality, and process efficiencies, along with the integration of new technologies, is beginning to show promising results. The company aims for a harvested volume of 200,000 GWT from its Norwegian operations, with current forecasts suggesting a feasible target of around 195,000 GWT along with 16,000 GWT from Scottish Seafarms. Additionally, in the VAP S&D segment, they predict an escalation in earnings, targeting an operational EBIT of NOK 1.25 billion by 2025. Their fully integrated value chain remains a source of strength, promising continued momentum in the competitive seafood market.
Henning Beltestad concludes with gratitude toward all employees for their hard work and dedication over the years, expressing enthusiasm for the future developments ahead. Lerøy Seafood Group ASA exemplifies how innovation and strong operational focus can lead to improved results, reflecting their commitment to excellence in the seafood industry.
Frequently Asked Questions
What are the recent financial results for Lerøy Seafood Group?
Lerøy Seafood Group reported an operational EBIT of MNOK 799 for the latest quarter, showcasing strong performance across its segments.
What initiatives is Lerøy implementing to enhance fish welfare?
The company is employing shielding technology that has successfully reduced lice treatment frequency by 85% in submerged cages.
How does Lerøy plan to support shareholder returns?
Lerøy's board is proposing a dividend of NOK 2.5 per share at the Annual General Meeting, in line with last year's distribution.
What are the company's sustainability goals?
Lerøy aims to reduce its greenhouse gas emissions by 46% by 2030 and is implementing circular economy practices in its operations.
What are Lerøy's goals for 2025?
The company is targeting a harvested volume of 200,000 GWT in Norway and expects significant growth in the VAP S&D segment, aiming for NOK 1.25 billion EBIT.
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