Release Date: May 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Proximar Seafood AS (STU:84Q, Financial) achieved a 99.5% superior grade of fish, indicating high-quality production.
- The company secured additional working capital financing, addressing previous financial requirements.
- Fuji Atlantic salmon is now available in high-end restaurants and hotels in Japan and Taiwan, enhancing brand visibility.
- The Japanese market for Atlantic salmon remains stable, with local production providing a competitive advantage.
- Proximar Seafood AS (STU:84Q) has a strong survival rate of over 98%, confirming the system's performance and fish health.
Negative Points
- The average harvest weight was below target due to restricted feeding and suboptimal production conditions.
- Repair works on biofilters are behind schedule, delaying full facility utilization.
- The average price achievement was negatively impacted by smaller fish sizes, reducing overall revenue.
- The company reported a loss of 58.5 million NOK after tax for the quarter.
- Capacity constraints require continued harvesting below ideal weights, impacting long-term production targets.
Q & A Highlights
Q: Do you believe that Japan and its consumers have further prioritized the focus for domestic food production in response to the recent shifts in the global trade environment?
A: Yes, there is an increasing focus from both authorities and consumers in Japan on domestic food production. This trend has been growing since 2015 and has been further emphasized by recent global events such as COVID-19 and geopolitical tensions. The focus on self-sufficiency is significant, especially as Japan ranks low among G7 nations in this regard. However, the primary feedback from consumers is the freshness of our product.
Q: Could you explain how the claim for business interruption will look? Will you estimate the volume loss plus the loss from early harvesting and make the full claim for lost revenue from this? How do you expect your insurance company to respond?
A: We are in ongoing discussions with our insurance company and broker regarding the business interruption claim. While we have focused on repair costs so far, we will now start working on claims for business interruption. The details, including the timeline and amounts, are still being developed.
Q: How is the liquidity and financing considering the delayed ramp-up?
A: We addressed our working capital requirements successfully, as mentioned in our fourth-quarter presentation. We are now moving into larger sales in the coming months, so the working capital needs have been addressed.
Q: What is the outlook for Proximar Seafood in 2025, considering the current challenges?
A: Despite short-term challenges related to biofilters and feeding, the long-term fundamentals are strong. We expect to stabilize production and achieve normal growth rates in the second half of the year. We are optimistic about meeting our targets for 2026, with a focus on getting back on track with harvest sizes.
Q: How has the recent sharp price drop for Atlantic salmon affected Proximar Seafood?
A: The price drop primarily affects fish below 3 kg. However, for market-size fish, we continue to see stable prices. We are optimistic about future demand and price achievements as we stabilize production and increase harvest sizes.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
