STRONG BIOLOGICAL PERFORMANCE IN THE FAROE ISLANDS FOR BAKKAFROST

Strong biological performance in the Faroe Islands and successful de-risking in Scotland for Bakkafrost. The Bakkafrost Group delivered a total operational EBIT of DKK 173 million (DKK 269 million) in Q3 2024.

(Figures in parenthesis refer to the same period last year unless otherwise specified)

The performance in Q3 2024 per region was as follows:

• Faroe Islands              Revenues of DKK 1,420 million (1,628 million)

Operational EBIT of DKK 310 million (542 million)

• Scotland                       Revenues of DKK 317 million (232 million)

Operational EBIT of DKK -138 million (-263 million)

Commenting on the result, CEO Regin Jacobsen said:

“We are not satisfied with our financial results this quarter, primarily impacted by low salmon prices. The strike in May combined with unplanned harvest of A-19 impacted negatively our ability to adapt to market needs to optimise market value for our products. The early harvest of remaining fish from farming site A-19, where the ISA virus was detected in two pens back in May had a negative financial impact. We are, however, very pleased with the effective response and our strong procedures, which successfully contained the virus. This challenge is now behind us, allowing us to focus forward.

“In the Faroe Islands, we have seen very good biological performance. This is evident in the strong growth, low mortality, and increased harvest weights. Our hatcheries have also delivered excellent operational results, enabling us to increase our smolt transfer expectations for this year, with further increases planned for next year.

“In Scotland, we conclude that our de-risking strategy has worked. Exceptional mortalities have reduced by more than 80% compared to last year, harvest weights have increased, and sea lice levels are all-time low — just like in the Faroes. We are making steady progress in ramping up production at the Applecross hatchery to produce large high-quality smolt and expect start transfer of 200g smolt in Q4. Hereafter, we expect to only transfer high-quality smolt above 200g.

“To maintain a strong competitive position, we are prioritising cost management and aligning our capacity with operational needs. In line with this, we have implemented several cost-saving measures and capacity adjustments in Scotland, including the closure of the processing facility at Marybank in July 2024. The full effects of these measures were not visible in Q3.

“The salmon market has been weaker in this quarter with low salmon prices throughout the quarter, but we look forward to a more favourable price environment – especially in H1 2025, where the supply will be weaker of high-quality salmon. Our expected harvest next year is 100,000 tonnes, of which we plan to allocate around 15% for VAP contracts”.

Source