Q2 2025 Leroy Seafood Group ASA Earnings Call Transcript
Key Points
- Leroy Seafood Group ASA (LYSFF) reported a record high in sales and distribution earnings, showcasing strong performance in this segment.
- The company achieved significant biological improvements, including the highest net production in sea, highest survival rate, and higher average harvest rates.
- There was a notable increase in harvested volumes, with 49,000 tons harvested compared to 36,000 tons last year, indicating growth in production capacity.
- The company maintained a strong operational EBIT of NOK680 million, despite a decrease from NOK906 million the previous year, demonstrating resilience in challenging market conditions.
- Leroy Seafood Group ASA (LYSFF) continues to invest in new farming technology and infrastructure, which is expected to enhance future operational efficiency and capacity.
- Spot prices for salmon and trout were significantly lower, approximately NOK30 less per kilo compared to the same quarter last year, impacting profitability.
- The operational EBIT per kilo for salmon and trout decreased from NOK27 million to NOK12.5 million, reflecting the pressure from lower spot prices.
- High sea water temperatures posed challenges, particularly affecting biological performance at the start of Q3.
- Net interest-bearing debt increased from NOK7 billion to NOK8.5 billion, primarily due to dividend payments and lower profitability in the farming segment.
- The wild catch segment faced a 32% reduction in the Cod quota, impacting catch volumes and raw material availability.
My name is Henning Beltestad. I'm CEO (inaudible). First of all, and Sjur will take you through the key financial sustainable value chain for seafood, and we're very, great opportunities, going forward. Our fully integrated value chain is our competitive advantage.
We mean that we deliver value, quality, availability, and convenience, and our value position is speed and cost efficiency, reliability and trust, product and category innovation and traceability and quality assurance and clear ESG commitments.
Highlights of the quarter strong biological performance, spot prices for salmon and trout well below last year, group contract share of 30% supporting both farming and VAP sales and distribution. A record high earnings in sales and distribution and segments, low quotas in wild catch offset by a significant price increase and positive cost development in farming. And in the quarter, we have paid out the dividend of NOK2.5 per share paid in the quarter. And we have had an operational EBIT of NOK680 million compared to
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