Q2 2026 P/F Bakkafrost Earnings Call Transcript
Key Points
- Revenues increased 16% year-on-year to DKK 1.8 billion, with operational EBIT jumping to DKK 273 million from DKK 65 million last year.
- Faroese operations delivered a record harvest of 26,700 tonnes, up 67% year-on-year, with operational EBIT per kilo improving to DKK 5.96 from DKK 0.37.
- Strong cash flow from operations of DKK 273 million, a significant improvement from a negative DKK 204 million in the prior year.
- Feed division maintained stable sales at 37,000 tonnes, with operational EBIT margin improving to 20% from 13%.
- Strategic inventory buildup of fishmeal and oil ensures self-sufficiency into Q2 2027, providing flexibility against raw material price inflation.
- Applecross hatchery ramp-up progressing, with smolt transfers increasing to 3.9 million in Q2 from 0.9 million last year, and operational loss reduced to DKK 30 million from DKK 72 million.
- Market outlook constructive with limited supply growth expected in H2 2026 and 2027, supporting stronger prices.
- Strong balance sheet with equity ratio unchanged at 58% and liquidity supported by DKK 1.3 billion in undrawn facilities.
- Scottish harvest volumes dropped 55% to 3,100 tonnes, leading to a negative operational EBIT per kilo of DKK 44.12 due to fixed cost dilution.
- Fair value adjustments were negative at DKK 406 million, resulting in a net loss of DKK 161 million for the quarter.
- Biological challenges from externally sourced smolt batches in Scotland caused incident-based costs of DKK 31 million, with high per-kilo impact due to low volumes.
- Marine raw material sourcing decreased 32% to 109,000 tonnes, and no external fishmeal or oil sales were made, impacting revenue.
- Net debt increased to DKK 4 billion from DKK 3.8 billion due to investments, working capital, and dividend payments.
- Rising prices for marine feed ingredients are expected to pressure feed costs, though mitigated by inventory and formulation flexibility.
- Applecross capacity utilization remains low at around 35%, with full production not expected until Q2 2027.
- Global salmon prices were muted with a reduced large fish premium, impacting sales margins.
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Good morning and welcome to the presentation of Bakker Frost's results for the second quarter 2026. My name is Hugne Jakobsson.
I'm here today with our CEO, Reijn Jakobsson.
First, disclaimer, which I will leave for self-study.
We will follow the usual agenda today, beginning with an overview of the second quarter before we move into markets and sales.
And then on to finance, operations and finally outlook.
So in the second quarter, operational performance improved for Packer Frost with revenues increasing 16% year on year to 1.8 billion and operational EBIT of 273, excuse me, 273 million compared to 65 million last year.
In the Faroes, we harvested more fish than we have ever done before in a quarter, 26,700 tonnes.
And in Scotland, it was the opposite. It was less than half, 55% reduction, 3,100 tonnes harvested. This is a result of the de-risking strategy that we have been following while we await the new capacity to be fully utilized with large
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