Release Date: May 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kaldvik AS (FRA:4YYA, Financial) achieved strong revenue growth, with revenues increasing to approximately EUR48 million, up from EUR31 million in the same quarter last year.
- The company maintained a healthy EBIT per kilo of EUR1.54, supported by solid operational performance and price achievements.
- Kaldvik AS successfully launched a new grow-out facility in Land North, Rifos, which became operational in the first quarter, enhancing production capabilities.
- The acquisition of a box factory is expected to provide approximately EUR3 million in annual cost savings, directly increasing margins and improving profitability.
- Kaldvik AS has secured a long-term financing package of EUR230 million, providing financial flexibility and supporting future growth initiatives.
Negative Points
- The company faced production challenges, including a lower share of superior grade products, impacting overall product quality.
- Kaldvik AS was in breach of certain loan covenants in the first quarter, although a waiver was obtained to ensure continued support.
- The book value of biological assets decreased by approximately EUR20 million, reflecting reduced fair value and low biological growth.
- Liabilities rose by EUR26 million, mainly due to the utilization of a short-term bridge facility and purchase price payables related to acquisitions.
- The process of obtaining new licenses in Seyðisfjörður has been lengthy, starting in 2016, and is still pending approval, delaying potential capacity expansion.
Q & A Highlights
Q: What week is the last one you will release smolt to sea this year?
A: Roy-Tore Rikardsen, Chief Executive Officer: We will transfer fish in October, likely in the first or second week.
Q: What is the anticipated contract share for the year 2025?
A: Robert Robertsson, Chief Financial Officer: We anticipate 20% of our sales will be through fixed contracts in 2025.
Q: Can you provide an update on the in-house sales organization?
A: Robert Robertsson, Chief Financial Officer: We are gradually building our in-house sales organization. Although we have been cooperating with external sales organizations, this is an ongoing process, and it's hard to say when the in-house team will take a larger portion of sales.
Q: Are there any plans for future equity raises?
A: Robert Robertsson, Chief Financial Officer: Yes, we are in the process of launching an equity raise of EUR45 million, with strong backing from our biggest shareholder, Austur Holding.
Q: What are the strategic benefits of the new license in Seyðisfjörður?
A: Robert Robertsson, Chief Financial Officer: The new license in Seyðisfjörður will enhance our capacity, flexibility, and reduce biological risk, contributing to the sustainability and health of our operations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
