Release Date: May 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SalMar ASA (SALRF, Financial) reported a record high seasonal number of fish and biomass in the sea at the end of the first quarter of 2025, indicating strong growth potential.
- The company experienced good biological performance in Northern Norway, with high growth and increased survival rates compared to previous years.
- SalMar ASA (SALRF) has taken steps to strengthen its value chain, including the acquisition of a controlling interest in Knutzesk and the merger plan for Wilso RS and Solmoy Farming RS.
- The company maintains a strong demand for its sustainable protein products, with positive market reception and new customer interest.
- SalMar ASA (SALRF) has secured flexible, unsecured, and green financing, ensuring sufficient liquidity and robust financial positioning in a volatile global environment.
Negative Points
- The first quarter of 2025 was financially weak for SalMar ASA (SALRF) due to late harvesting and the quality of harvested fish, resulting in lower price achievement.
- The company faced challenges with a high proportion of downgraded fish and low average weight in central Norway, which increased costs and reduced earnings.
- Biological challenges, including jellyfish attacks, led to persistent downgrades and wound problems in fish, affecting quality and price.
- SalMar ASA (SALRF) experienced a significant decline in operational EBIT compared to the previous quarter, driven by lower volume and price achievement.
- The company is facing global uncertainty and tariffs, particularly affecting exports to the US, contributing to increased market volatility.
Q & A Highlights
Q: Can you elaborate on the challenges faced in the first quarter regarding fish quality and how it impacted financial results?
A: Frode Arntsen, CEO: The first quarter was challenging due to late harvesting, a high proportion of downgraded fish, and low average weight, particularly in central Norway. These factors increased costs and reduced earnings. Despite these challenges, we focused on building biomass, which affected price achievement and impacted our financial figures negatively.
Q: What steps is SalMar taking to address the biological challenges and improve fish quality?
A: Frode Arntsen, CEO: We have started using a new winter vaccine for fish released from summer 2024, which we expect to improve fish quality. Additionally, we are focusing on harvesting weaker fish early to allow better fish to grow, which should enhance the average weight and quality of future harvests.
Q: How is SalMar planning to manage the increased debt levels due to biomass investments?
A: Ulrik Steinvik, CFO: Despite the increased debt, our financial situation remains robust. We have issued new green bonds and extended existing credit facilities to ensure flexible and secure financing. These measures support our strategy of maintaining robust financing and seizing growth opportunities.
Q: What is the outlook for SalMar's production and market demand for the rest of 2025?
A: Frode Arntsen, CEO: We expect global supply growth to decline, which, coupled with our record high biomass, positions us well for growth. Despite global uncertainty and price declines, demand for salmon remains strong, and we anticipate increased demand due to salmon's competitive pricing against other proteins.
Q: Can you provide more details on the recent mergers and acquisitions and their expected impact?
A: Ulrik Steinvik, CFO: We completed the acquisition of a controlling interest in Kuntefisk and announced a merger plan for Wilco and Solmoy Farming. These transactions are expected to enhance operational efficiency, cost reductions, and financial robustness, supporting our growth strategy in existing farming areas.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
