Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kaldvik AS (STU:4YYA, Financial) reported a significant increase in total revenue for Q4 2024, amounting to EUR47 million, compared to the corresponding quarter last year.
- The company achieved an average price of EUR6.9 per kilo, up from EUR6.2 per kilo in the previous quarter.
- Kaldvik AS has secured increased well-boat capacity for smolt release in 2025 and beyond, enhancing operational flexibility.
- The company is implementing extensive improvement programs to reduce operational risk and increase security, including a new grow-out facility operational in Q1 2025.
- Kaldvik AS is in the process of acquiring strategic assets, including a box factory, expected to reduce packaging costs by approximately EUR3 million annually.
Negative Points
- Kaldvik AS faced a significant biological incident in Q4 2024, resulting in a biomass write-down of EUR23.1 million.
- High mortality rates on the 2022 and 2023 fish generations were a major setback, impacting financial and operational performance.
- The company was in breach of certain loan covenants in Q4, although a waiver was obtained from financing partners.
- Kaldvik AS experienced a shortfall in smolt release, with EUR1.2 million less than planned at sea due to colder than normal temperatures.
- The company missed its harvest targets in Q4 due to adverse weather conditions and lack of well-boat capacity.
Q & A Highlights
Q: Can you clarify the details of the biomass write-down and its impact on financials?
A: The biomass write-down in Q4 was due to biological incidents, leading to increased mortality. This write-down is reflected in the 2024 financials, impacting the EBIT negatively by EUR18 million if included. (Robert Robertsson, CFO)
Q: What happened with the EUR1.2 million smolt release, and why was it not fully executed?
A: Part of the EUR1.2 million smolt was not released due to high mortality rates and low sea temperatures, which led to a decision to hold back some releases. (Roy-Tore Rikardsen, CEO)
Q: What is the current biomass at sea, and how does it affect future harvest guidance?
A: The biomass at sea was approximately 21,000 tons at the end of last year. This figure supports our harvest guidance of 21,500 tons for 2025. (Roy-Tore Rikardsen, CEO)
Q: Are the extraordinary winter wounds and smolt survival issues resolved, and what is the outlook for Q1?
A: The extraordinary winter wounds and mortality issues are expected to be resolved by the end of Q1, with improving sea temperatures indicating a positive trend. (Roy-Tore Rikardsen, CEO)
Q: Can you provide an update on the box factory acquisition and its expected benefits?
A: The acquisition process is ongoing, with final reports expected soon. The acquisition is anticipated to reduce packaging costs by approximately EUR3 million annually, enhancing operational efficiency. (Robert Robertsson, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
