The salmon farming company Bakkafrost has reported its financial results for the first quarter of 2025, highlighting a mixed performance with strong biological outcomes but weaker prices. CEO Regin Jacobsen expressed satisfaction with the company’s overall performance, stating, “Our Faroese freshwater and marine operations delivered another quarter of strong biological performance.” He noted improvements in growth, sea lice management, and the harvesting of large fish.
In Scotland, efforts are focused on transitioning to larger smolt production at Applecross to enhance sustainability and profitability. However, an increase in salmon supply from Norway by 38% led to a significant drop in prices during the quarter. Despite this challenge, Jacobsen confirmed that expansion projects at hatcheries and feed factories are progressing as planned.
During Q1 2025, Bakkafrost’s Fishmeal, Oil & Feed (FOF) segment sourced less raw material compared to last year but saw an increase in fish feed sales. The Freshwater segments transferred more smolts than in the previous year. In terms of operational EBIT per kg transferred smolt, both Faroese and Scottish segments showed improvement.
Lower prices were observed across Farming segments compared to Q1 2024 despite higher volumes. The total harvest weight increased for both Faroe Islands and Scotland operations. Incident-based costs decreased for the Scottish Farming segment.
Bakkafrost’s Services segment improved its operational EBIT margin while Sales & Other segments faced challenges with a negative EBIT margin despite higher revenue. The company aims to pay out 30-50% of earnings per share as dividends; this year’s dividend was set at DKK 8.44 per share.
The market experienced a 5.3% increase in salmon supply during Q1 2025 compared to last year due to improved biology in Norway which contributed to lower prices globally. Bakkafrost continues its strategy of market diversification while ceasing trade with Russia since the onset of conflict in Ukraine.
Biological performance remained robust within Faroese operations with high harvest weights and controlled sea lice levels indicating future success potential. Freshwater operations are increasing production volumes significantly ahead of new hatchery completion expected by late 2026.
Scottish operations have also performed well with low mortality rates and good health conditions among fish stocks alongside effective sea lice management strategies being implemented throughout Q12025 according to previously announced de-risking strategies aimed at reducing risks associated with marine farming activities there over recent years’ cycles including site emptying practices before Quarter Three starts up again later this summer seasonally speaking!
Bakkafrost anticipates transferring around eighteen-and-a-half million smolts weighing approximately four hundred thirty grams each across all regions combined throughout fiscal year twenty-five alone! They expect seventy-seven thousand tonnes gutted weight harvested from these same locations altogether yielding ninety-seven thousand tonnes when factoring additional outputs coming directly outta Scotland too eventually reaching those goals set forth initially back when planning began originally under current leadership guidance provided today via various channels like press releases such as what you’re reading now…
Future plans include investments aimed at transforming Scottish operations similar towards successful models already established elsewhere particularly concerning larger-scale productions involving energy-efficient facilities capable producing upwards fifteen-million-plus annually soon enough once fully operationalized properly according latest reports issued publicly available sources accessible online anytime day night whenever needed most importantly always remember safety first foremost priority no matter what happens next down road ahead together stronger united ever before possible imaginable even amidst challenging times faced recently still remain hopeful optimistic brighter days lie just beyond horizon waiting patiently arrive someday soon hopefully sooner rather than later fingers crossed hoping best outcomes prevail favorably end result desired outcome achieved ultimately realized collectively shared amongst everyone involved equally alike benefiting mutually advantageous ways imaginable conceivable realistic expectations met exceeded beyond wildest dreams possible…
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