SalMar salmon farm in Mefjord, Northern Norway.
SalMar today presented its Q1 2025 results report, of which CEO Frode Arntsen said that "financially it is unfortunately weak." As previewed in its April trading update, the company has had a challenging start to the year characterized by a low harvest volume. The Norwegian company closed 2024 with an eye on 2025, and, in this first quarter, the focus has been precisely that, building biomass so that increased volume is facilitated later in the year.
On the financial side, the Group's operational EBIT in Q1 2025 was NOK 798 million, 48% lower than in Q1 2024, when it reached NOK 1,521 million. Operational EBITDA, meanwhile, was NOK 1,248 million, 35% lower than in the same period last year, when it was NOK 1,929 million. Thus, year-on-year, operating revenues fell by 21% to NOK 5,193 million compared to NOK 6,555 million in 2024.
In terms of harvest volume, in Q1 2025, SalMar harvested 42,700 tons compared to 52,900 tons in the same quarter last year. The bulk of this volume, 40,000 tons, corresponds to production in Norway - including Farming Central Norway and Farming Northern Norway -, and was harvested at the end of the quarter. SalMar Ocean - wholly-owned subsidiary of SalMar ASA since March - added 1,200 tons to that amount.
Regarding the other countries where the Norwegian salmon company operates, in Iceland, and also focused on biomass growth, Icelandic Salmon had, as expected, a low harvest volume, with costs remaining high. Meanwhile, in Scotland, Scottish Sea Farms - a joint venture 50% owned by SalMar - reported another good quarter with increased harvest volume, high harvest weight, and good biological status in the sea in all regions.
Thus, with Central and Northern Norway providing over 93% of total production, late harvesting in this territory, carried out as a result of fish welfare considerations, resulted in a low average weight. Furthermore, SalMar said, the share of downgraded fish was high, which harmed prices achieved during the quarter.
Finally, concerning the Sales and Industry segments, SalMar said that lower seasonal volume led to low capacity utilization of harvesting facilities during Q1 2025. As mentioned, large volume variations in the period affected price achievement, but it stated, results were driven by the positive contribution from contracts, 40% of which were physical and financial fixed price contracts.
"In short, we are pleased with the development in growth and survival in the sea, but financially it is unfortunately weak as a result of harvesting late in the period and the quality of harvested fish in the quarter," Frode Arntsen, CEO of SalMar ASA, commented.
If, as said, the Farming Norway segment already accounts for the bulk of SalMar's production, the company's plans are to increase that presence. In its Q1 2025 results report, the Norwegian salmon farming company said it "has great faith in and willingness to invest in profitable and sustainable salmon production in Norway," and has recently further strengthened its position in the country.
In February 2025, SalMar completed the purchase of a majority stake in Knutshaugfisk AS. The acquisition of the family-owned farming company in Central Norway, achieved through a combination of shares and cash, had been announced in November 2024. As said then, Knutshaugfisk currently has 3,466 tons of MAB under license and four salmon farms in production area six in Central Norway.
In April, SalMar also announced that a merger plan between Wilsgård AS and SalMar Farming AS had been approved. Since the acquisition of NTS and the merger with NRS in 2022, SalMar has held a 37.5% stake in Wilsgård. With a strong presence in Senja, the Wilsgård Group covers the entire value chain, from hatchery and edible fish to slaughterhouse, processing, sales, and tourism, and has 5,844 tons MAB in licenses in production areas 10 and 11 in Northern Norway.
"The merger between Wilsgård and SalMar Farming brings together two strong players in fisheries and aquaculture, and contributes to regional development," SalMar said. Subject to, among other things, necessary approvals from relevant authorities, it is expected to be completed during the summer of 2025.
"Wilsgård is a well-run company that, like SalMar, operates aquaculture in one of the best areas in the world for salmon production. This merger will not only strengthen our position in the region, but also contribute to increased operational efficiency, cost reductions and financial robustness," SalMar's CEO, Frode Arntsen, stated. "We have great ambitions for the future and look forward to further developing the combination of our companies."
Regarding the outlook for the rest of the year, the Norwegian salmon company noted that the good biological performance at sea in Q1 2025 means that it will enter the second quarter with a record biomass for the season, which allows it to maintain volume guidance for the year.
For 2025, SalMar expects 256,000 tons in Norway, 7,000 tons from SalMar Ocean, 15,000 tons in Iceland, and 32,000 tons in Scottish Sea Farms (100% basis). Considering the relative share of Scottish Sea Farms, a total of 294,000 tons is expected for the Group, which would represent a 17% growth in harvest volume compared to 2024.
Despite the global uncertainty and the increase in volume that has recently characterized the market, SalMar said it continues to experience strong demand for its products and expects lower global supply growth in the second half of 2025 compared to that seen in the first half of the year.