BAKKAFROST – SALMON DEMAND IS STRONG

Bakkafrost – salmon demand is strong. The Bakkafrost Group delivered a total operating EBIT of DKK 120 million in Q4 2021. Total harvested volumes were 25.8 thousand tonnes gutted weight (tgw). Faroe Islands (FO): 20.7 tgw, Scotland (SCT): 5.1 tgw. The combined FO farming and VAP segments made an operational EBIT of DKK 310 million. The FO farming segment made an operational EBIT of DKK 282 million. The SCT farming segment made an operational EBIT of DKK -214 million. The VAP segment made an operational EBIT of DKK 28 million. The EBITDA for the FOF segment was DKK 89 million.

The Group made a profit for Q4 2021 of DKK -3 million (DKK -38 million). For 2021, the profit was DKK 964 million (DKK 463 million).

Commenting on the result, CEO Regin Jacobsen said:

“The results in this quarter have been negatively affected by the continuation of the biological issues we reported in previous quarter and gave an update on in our profit warning in December. We are now pleased that mortality levels have normalised.

“In the Faroe Islands, we are pleased to have reached record high harvesting volumes in the fourth quarter and for the full year, despite some challenges we are excited to see record low feed conversion rates and record high weight on transferred smolt. Our feed operation also sold very high volumes in both the fourth quarter and for the full year.

“We are convinced that our strategy and investments will reduce the biological risk by ensuring stronger biology, which is crucial to maintain a competitive operation. In this quarter we have entered at term sheet for a 700 mEUR sustainability-linked credit facility with a number of sustainability targets.

“The salmon market is very strong. The demand for salmon from all segments has increased significantly in the last quarter, leading to high prices. Compared to same quarter last year, the salmon prices increased around 37% in this quarter, despite higher volumes sold. Looking ahead, the market situation seems very bullish with tight supply and markets normalising after Covid-19.“