Q1 2025 SalMar ASA Earnings Call(recording) Transcript
Key Points
- SalMar ASA (SALRF) 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.
- 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.
Good morning everyone and welcome to the presentation of Salmar's results for the first quarter of 2025. My name is Freud Oren and I am the CEO of Salmar and together with me today, I have our CFO Ulrich Steinwig.
That's, it's all about producing salmon on the salmon terms. This means that you put the salmon first and that the focus on good biology will always be the way to good financial results, even though you can get results and events in isolation in some quarters that you would not have wanted. The first quarter of 2025 is a good example of this.
Based on a demanding 2024, we prioritize building biomass in the quarter, which also led to harvesting late in the period, which affects price achievement and impacts the figures we will review today.
In addition to late harvest, we also experienced a high proportion of downgraded fish and a low average weight in central Norway, which increased costs and reduced earnings.
In addition, a challenging biology makes everyday life more difficult for the sales department,
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