Assessing SalMar's Q1 Performance and Future Prospects
SalMar has recently concluded its first quarter with a notable focus on building biomass to set the stage for increased harvest volumes for the remainder of the year. Although Q1 presented challenges with low harvest volumes, the company is optimistic about growth prospects going forward.
Quarter Highlights and Financial Performance
During the first quarter, SalMar reported a harvest volume of 40,400 tonnes in Norway, contributing to an operational EBIT of NOK 852 million. For the entire group, the harvest volume slightly increased to 42,700 tonnes, with an operational EBIT of NOK 798 million. The operational EBIT per kilogram stood at NOK 21.1 and NOK 18.7, respectively.
Despite these figures, the financial results reflected the impact of harvesting late in the period. Fish harvested were primarily affected by welfare considerations, leading to a lower average weight. A higher share of downgraded fish also contributed to this quarter's price challenges.
Sales Contributing Factors
Sales and industry results demonstrated positive contributions from existing contracts, although the overall harvest volume from Icelandic Salmon remained low and costly. On a positive note, Scottish Sea Farms managed to report an increased harvest volume, coupled with high weights and favorable biological conditions across all regions.
Strengthening SalMar's Position in Norway
SalMar remains committed to investing in sustainable and profitable salmon production. The recent acquisition of a controlling stake in AS Knutshaugfisk highlights SalMar's ambition to solidify its presence in the Norwegian market, particularly with 3,466 tons MTB in licenses and several operational locations.
The upcoming merger between Wilsgård AS and SalMar Farming AS indicates strategic growth. Wilsgård has established operations on Senja with 5,844 tons MAB in licenses, enhancing SalMar’s capabilities as both companies unite to fortify their regional impact.
CEO Insights on Future Directions
CEO Frode Arntsen expressed confidence in the merger, stating that it would amplify operational efficiency while advancing financial stability in the company. With a unified goal, both entities aim to leverage their shared expertise in aquaculture.
Looking Ahead: Embracing Growth
The progression into 2025 has been marked by promising biological performance showcasing record-high biomass levels entering the second quarter. SalMar remains steadfast in its forecast, projecting a targeted harvest of 256,000 tonnes from Norway, 7,000 tonnes from SalMar Ocean, 15,000 tonnes from Iceland, and an anticipated 32,000 tonnes from Scottish Sea Farms.
This translates to an overall expected group harvest of approximately 294,000 tonnes, indicating a growth of 17 percent in harvest volume compared to previous years. Despite potential market uncertainties, SalMar is optimistic, currently experiencing robust demand for its products.
Market Trends and Future Expectations
The global salmon market is poised for a shift in supply growth throughout the second half of the year as strong demand continues. SalMar is well-prepared to navigate these changes while focusing on enhancing its production capabilities.
Contact Information for Further Inquiries
For further inquiries regarding SalMar's operations, interested parties can reach out to the following:
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
About SalMar
SalMar stands out as one of the leading and most efficient salmon producers globally, with an extensive portfolio that spans various aquaculture regions including Central Norway, Northern Norway, Offshore, and Iceland, along with significant processing operations.
Frequently Asked Questions
What is SalMar's focus in Q1 2025?
SalMar emphasized building biomass to enhance harvest volumes for the rest of the year, despite initial low harvest amounts.
How did SalMar perform financially in Q1?
In Q1, SalMar recorded an operational EBIT of NOK 798 million, with a harvest volume of 42,700 tonnes for the group.
What strategic initiatives has SalMar undertaken recently?
SalMar made significant moves such as acquiring a controlling stake in AS Knutshaugfisk and planning a merger with Wilsgård AS to strengthen its market position.
What is the expected harvest volume for 2025?
SalMar anticipates a total group harvest of 294,000 tonnes, marking a 17% increase compared to the previous year's volume.
How does SalMar view future market conditions?
SalMar is optimistic about continuing demand despite potential market uncertainties and expects a reduction in global supply growth in the latter half of the year.
