Record Harvest and Cost Efficiency at SalMar
SalMar has recently achieved a remarkable harvest volume, showcasing their capability to adapt amidst fluctuating market conditions. This achievement, combined with a reduction in operational costs, prepares the company for a vibrant performance trajectory. Although market prices for salmon have remained low, SalMar's steady demand sets a foundation for recovery.
Financial Performance in Perspective
In the latest quarter, SalMar reported an operational EBIT of NOK 858 million from its Norwegian operations, buoyed by a harvest volume of 89,400 tons. The overall group recorded an operational EBIT of NOK 711 million for a total harvest of 93,200 tons. This translates to NOK 9.6 per kilogram for Norway and NOK 7.6 per kilogram for the group. While these figures reflect the impact of market fluctuations, they highlight SalMar’s strong biological performances, particularly in Northern Norway, where operational efficiencies have been realized.
Quality and Biological Performance
Interestingly, the proportion of superior quality salmon has returned to expected levels, complemented by continued strong biological results. The company's capabilities in harvesting and processing have proven to enhance operational flexibility and responsiveness to market dynamics. Sales from both contracts and industry have remained robust, signifying a strong demand for SalMar's salmon products.
Challenges and Opportunities
However, not all segments have fared equally well; the Icelandic Salmon branch has reported weaker results attributed to persistent high costs. Nonetheless, the outlook remains positive, particularly with news that Scottish Sea Farms has consistently delivered commendable biological performance. Such variations across their segments provide SalMar with actionable insights to optimize operations further.
Merging for Sustainable Growth
A significant development for SalMar has been the successful merger with Wilsgård, which was finalized recently. This strategic move strengthens SalMar's presence in Northern Norway, laying groundwork for expanded sustainable growth initiatives. As the company adapts to meet future challenges, their focus on improving operational efficiencies while promoting sustainability will be key drivers of success.
Looking Ahead: Expectations for 2026
As SalMar enters the upcoming financial year, expectations are set high. A total harvest volume of 299,000 tons is anticipated for the group in 2025, representing a remarkable 19% increase from the previous year. Furthermore, projections indicate a continued rise in volume, targeting 319,000 tons for 2026, marking a 7% growth compared to 2025. Specific expectations include 275,000 tons from Norway and Ocean, 21,000 tons from Iceland, and 45,000 tons from Scottish Sea Farms.
Market Dynamics and Demand
Amidst the global uncertainties affecting salmon prices, SalMar remains committed to meeting strong consumption demands. The company envisions limited growth in global supply for 2026 but expects continuous steady demand for its high-quality products. This demand sustains the belief in operational improvements and a focus on reducing input costs across all segments.
Connect with SalMar
For stakeholders and interested parties, the full report and details regarding the company’s third-quarter performance will be disclosed during a presentation by CEO Frode Arntsen and CFO Ulrik Steinvik, scheduled for today at 08:00. This event will take place at a prominent venue in Oslo and will also be available via a live webcast, ensuring accessibility for all investors.
If you require further information about SalMar, you can reach out to their executives directly:
Frode Arntsen, CEO
Tel: +47 482 06 665
E-mail: frode.arntsen@salmar.no
Ulrik Steinvik, CFO
Tel: +47 900 84 538
E-mail: ulrik.steinvik@salmar.no
Håkon Husby, Head of IR
Tel: +47 936 30 449
E-mail: hakon.husby@salmar.no
Frequently Asked Questions
What are the recent financial results for SalMar?
SalMar reported an operational EBIT of NOK 711 million for the last quarter, with a harvest volume of 93,200 tons.
How does the merger with Wilsgård benefit SalMar?
The merger enhances SalMar's footprint in Northern Norway and positions the company for sustainable growth.
What are SalMar's harvest projections for 2026?
The company expects a total harvest volume of 319,000 tons for 2026, marking a 7% increase over 2025.
What challenges is SalMar currently facing?
High costs have adversely affected the Icelandic Salmon operations, though other segments are performing well.
How can I find more information about SalMar?
For comprehensive details, visit SalMar's website or contact their corporate representatives directly.
