The Bakkafrost Group reported an operational EBIT of DKK 22 million for the third quarter of 2025, down from DKK 173 million in the same period last year. Revenues in the Faroe Islands reached DKK 1,405 million with an operational EBIT of DKK 227 million, while Scotland saw revenues of DKK 282 million and an operational EBIT loss of DKK 205 million.
CEO Regin Jacobsen commented on the results: “We are not satisfied with the financial results in this quarter, which were impacted by weak market prices and continued high global supply.
However, we are very pleased with the exceptionally strong biological performance in the Faroe Islands. Our farming operations delivered record survival, strong growth, and the best biological results ever achieved in Bakkafrost’s history. Importantly, farming costs in the Faroe Islands continue to decline – down 12% year-on-year in Q2 and down a further 14% in Q3 – reflecting the impact of excellent biology, efficient farming, and disciplined operations.
In Scotland, performance was stable at most farming sites in the early part of the quarter but deteriorated following a disease outbreak at Portree, which had a notable impact on results. At the same time, the Applecross hatchery has made solid progress under its new management team, with operations stabilising and supporting the continued ramp-up of large, high-quality smolt production.
Looking ahead, we expect the market situation to gradually improve as global supply growth slows and demand for high-quality salmon remains firm. This should support higher price levels through the winter and into 2026.
Despite financial headwinds this quarter, the strong biological foundation across the Group positions Bakkafrost well for the future. Our priorities remain unchanged – to strengthen biological control, maintain cost discipline, and deliver sustainable long-term value through operational excellence.”
The company highlighted that salmon supply increased by nearly 12% globally during Q3 compared to last year. This led to lower reference prices for salmon—down about 13%—mainly due to increased output from Norway and Chile.
Bakkafrost’s Faroese operations showed improvements in biological metrics such as fish health and survival rates. The average weight of transferred smolt rose slightly compared to last year. The freshwater segment released more smolts overall: 18.5 million over nine months versus 16 million previously.
In Scotland, while most sites performed well early in Q3, a disease outbreak at Portree caused higher mortality rates later in September. The company expects this will affect Scottish harvest volumes next year but is maintaining its guidance for a total harvest of around 22,000 tonnes gutted weight from Scotland for all of 2025.
Upgrades at Applecross hatchery have improved biosecurity and enabled flexible production planning for larger smolt sizes ranging from 200g to 400g per batch.
Bakkafrost expects to transfer about 20 million smolts averaging around 440g each in the Faroe Islands next year; Scotland is expected to see transfers totaling about ten million smolts averaging about 179g each.
For full-year projections in both regions combined, Bakkafrost anticipates harvesting approximately 104,000 tonnes gutted weight this year and aims for about 112,000 tonnes next year if biological conditions allow.
On investment plans announced earlier this year during Capital Markets Day (June), Bakkafrost outlined a five billion DKK program running through to 2030 aimed at increasing efficiency and capacity—including expanding annual smolt production capacity up to roughly twenty-four million units weighing five hundred grams each by late-2026 when its new Skálavík hatchery comes online. Planned investments also include expanded feed production facilities as well as upgrades across both Faroese and Scottish operations such as new treatment vessels for fish health management.
Bakkafrost’s financial position remains robust thanks partly to its sustainability-linked credit facility secured in March 2022 (EUR 700m plus EUR 150m extension option). The group continues its policy targeting dividend payouts between thirty percent and fifty percent of earnings per share annually.
The company employs more than sixteen hundred people across its integrated value chain covering feed production through sales offices located internationally including Denmark, France (Boulogne-Sur-Mer), New Jersey (US), Edinburgh (Scotland), with headquarters remaining based in the Faroe Islands.