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BAKKAFROST DETECTS MARKET IMPROVEMENTS

BAKKAFROST DETECTS MARKET IMPROVEMENTS

Bakkafrost detects market improvements. The Bakkafrost Group delivered a total operating EBIT of DKK 223.5 million in Q1 2021. Total harvested volumes were 21.0 thousand tonnes gutted weight (tgw). Faroe Islands (FO): 14.0 tgw, Scotland (SCT): 7.0 tgw. The combined FO farming and VAP segments made an operational EBIT of DKK 218.3 million. The FO farming segment made an operational EBIT of DKK 143.3 million. The SCT farming segment made an operational EBIT of DKK -6.2 million. The VAP segment made an operational EBIT of DKK 75.0 million. The EBITDA for the FOF segment was DKK 48.3 million.

The Group made a profit for Q1 2021 of DKK 407.7 million (DKK -148.0 million).

Commenting on the result, CEO Regin Jacobsen said:

“Overall, we are satisfied with the results from this quarter. The salmon market has been severely hampered by the Covid-19 pandemic, but during this quarter we have also seen clear signs of improvements in the market. The global supply of salmon in this quarter increased by nearly 16%, compared to the first quarter last year. Despite such increase in supply, salmon prices increased during the quarter. The demand for salmon has been very strong in the retail segment and during this quarter we have also seen demand from the food service segment picking up again. We expect this positive development to continue as Covid-19 mass vaccination progresses in the key markets for salmon. All in all, the salmon market outlook is good for the rest of 2021 as the global supply is expected to decrease somewhat, compared to the same period last year.

“We are especially pleased with the strong results from the VAP segment. Once again, we have seen the benefit of having a flexible value chain which is of great importance to us to maintain our competitive position.

“The farming segment in the Faroe Islands has performed well and the biology has been strong with good growth and low feed conversion factor. Quarter by quarter our average smolt size increases which also was the case in this quarter. In Scotland, the farming performance is gradually improving, and we expect to see some increase in average smolt size by the end of this year.

Our level of activity has been high in the first quarter of 2021. This applies to our production as well as to our ongoing investment projects in the Faroe Islands and Scotland. This creates indirect activities and jobs in the local communities where we operate and prefer to source from. The importance of this has been especially high during the Covid-19 pandemic. In this quarter alone, our sourcing from local suppliers in the Faroe Islands amounted to DKK 298 million.”

Photo credit: Bakkafrost

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