SalMar Reports Strong Q4 Results and Positive Growth Outlook
SalMar Shows Resilience with Strong Fourth Quarter Results
The fourth quarter marks a significant moment for SalMar as it wraps up a challenging year with promising results. Despite facing various obstacles, improvements in biological conditions towards the end of the year suggest much brighter prospects are on the horizon for 2025.
Impressive Financial Performance
In terms of financial results, SalMar reported an operational EBIT for Norway of NOK 1,485 million in the fourth quarter, reflecting a solid harvest volume of 67,300 tonnes. Notably, the operational EBIT per kilogram reached NOK 22.1. For the entire group, the figures were also commendable, with an operational EBIT of NOK 1,489 million, a harvest volume of 73,800 tonnes, and an operational EBIT per kilogram at NOK 20.2.
Farming Success in Norway
The farming segments in Norway demonstrated excellent development throughout the quarter, driving robust results. SalMar's dedicated sales and industry teams contributed positively, showcasing an efficient and flexible operational setup that led to favorable outcomes.
Future Production Cycles
Looking ahead, the company’s initiatives in SalMar Aker Ocean are gaining momentum. The production cycles for Arctic Offshore Farming and Ocean Farm 1 are currently in progress, with harvesting expected in the first and second quarters of the upcoming year. This proactive planning underscores SalMar's commitment to boosting its operational capabilities.
Enhancing Growth Through Strategic Investments
SalMar is firmly dedicated to expanding its sustainable and profitable salmon production in Norway. Recently, the company completed the acquisition of a controlling stake in AS Knutshaugfisk, which includes licenses for 3,466 tonnes and four farming locations situated in Mid-Norway. This move is a part of SalMar’s strategy to strengthen its foothold in the region further.
Collaborative Efforts with Wilsgård AS
In addition to its recent purchase, SalMar has maintained a stake in Wilsgård AS since its merger with NTS in 2022. As part of a new collaboration, SalMar ASA and Wilsgård Sea Service AS, which co-own 75% of Wilsgård AS, have agreed to enhance their shared ownership interests in the company. Wilsgård boasts a strong presence in Senja and holds licenses amounting to 5,844 tonnes in Northern Norway.
Future Outlook for 2025
As SalMar looks ahead to 2025, the company has set ambitious goals with several initiatives across its value chain aimed at enhancing both biological and financial outcomes. The company plans to invest NOK 1.9 billion, primarily focusing on fish welfare improvements, which reflect its commitment to sustainable practices.
Volume Guidance
For the upcoming year, SalMar is maintaining its volume guidance, expecting to produce 254,000 tonnes in Norway, with additional contributions from SalMar Aker Ocean, Iceland, and Scottish Sea Farms, leading to an anticipated total of 294,000 tonnes for the group. This represents a 17% increase in harvest volume compared to the previous year.
SalMar is observing strong demand for its high-quality products, and with global supply growth expected to remain low, the company is well-positioned to capitalize on these market conditions.
Commitment to Continuous Improvement
In closing, CEO Frode Arntsen emphasized the opportunities for growth and cost reduction across all business segments. Despite the challenges faced during the past year impacting harvest volumes, the company is actively taking steps to adapt and enhance operations continuously.
Frequently Asked Questions
What were SalMar's operational EBIT figures for Q4 2024?
SalMar reported an operational EBIT of NOK 1,485 million in Norway and NOK 1,489 million for the entire group during the fourth quarter of 2024.
What is the expected harvest volume for SalMar in 2025?
SalMar anticipates a total harvest volume of 294,000 tonnes for 2025, including contributions from various segments.
How is SalMar enhancing its position in Norway?
SalMar has strengthened its position by acquiring a controlling stake in AS Knutshaugfisk and collaborating with Wilsgård AS to enhance their operations.
What are SalMar's investment plans for 2025?
The company plans to invest NOK 1.9 billion in 2025, focusing mainly on improving fish welfare and operational efficiencies.
How has SalMar performed in the European market?
SalMar has experienced a strong demand for its products and maintains a solid financial position, positioning itself well for future growth in the market.
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