Andfjord Salmon’s 2022 results, above expectations

According to the company, 2022 results demonstrate its ambition to develop the world's most fish-friendly and sustainable fish farming facility of its kind is realistic.
As of March 15, 2023, the average weight of Andfjord salmon had reached 2,203 grams. Photo: Fredrik Ahlsen, Maverix.
As of March 15, 2023, the average weight of Andfjord salmon had reached 2,203 grams. Photo: Fredrik Ahlsen, Maverix.

Norwegian land-based salmon farming company Andfjord Salmon has today published its annual report for 2022. The results presented today, together with their sustainability report, not only confirm the "solid growth" already announced in their Q4 report but also improve it. "I am proud of the fact that Andfjord Salmon delivered as promised in 2022, with results above expectations", says Martin Rasmussen, CEO of Andfjord Salmon.

A realistic ambition

In terms of financials, in 2022, the loss before income tax was NOK 56.7 million (€4.89 million/$5.36 million), compared to a loss of NOK 34.4 million (€2.96 million/$3.25 million) in 2021. According to the report, these losses are in line with the board's expectations for the current phase of the company, which it expects to generate its first sales revenue in 2023.

However, Andfjord Salmon was born with the ambition to develop the world's most respectful and sustainable fish farm of its kind. Therefore, the highlight in the announcement released today alongside the 2022 annual results is that "everything the company has achieved during 2022 has demonstrated that this is a realistic ambition".

"To realise such a hefty ambition, it is vital that corporate development and sustainability are intertwined. How sustainability is integrated with Andfjord Salmon's business strategy, our future targets and how we document our progress are detailed in our third annual sustainability report", adds Martin Rasmussen, CEO of Andfjord Salmon.

One of Andfjord Salmon's square land-based pools in Kvalnes, Andøya, Norway. Photo: Andfjord Salmon.

2022, a year filled with milestones

"2022 was a highly eventful year for Andfjord Salmon with first smolt release as one of the key milestones. The highlight of the second half of the year was the strong biological performance in our first pool at Kvalnes, which resulted in strong growth and an impressive survival rate for our salmon", Martin Rasmussen also points out.

In addition to those mentioned by its CEO, among the highlights of the past year, the report also emphasizes the strategic food supply agreement reached in June with Skretting Norway and Sortland-based Zooca®. This is a long-term cooperation to increase the utilization of the zooplankton Calanus finmarchicus (Calanus) in salmon feed. The company is the first to use it as a commercially developed feed ingredient.

Another notable move was the NOK 173.9 million (EUR 16.8 million at the time) investment that Portugal-based international food industry group Jerónimo Martins made in Andfjord Salmon in June last year. In addition, the company notes that the Andøy municipal council approved its zoning plan application for the development of a land-based fish farming facility in Breivik, Andøya, Norway.

Next steps

In the CEO's letter included in the report, Martin Rasmussen says: "Saturday 25 June 2022 marked the start of a new era for Andfjord Salmon. From this date we were not only a fish farming company in theory, but in practice too, as first smolt was released in our first pool at Kvalnes, Andøya, in Norway".

However, the first pool is only the first step. The next is to develop phase two of the development, which they call Kvalnes I. "We have during 2022 worked intensively with suppliers to identify the most efficient plan for further development", he writes. "We will invite shareholders to capital markets update during spring 2023 to present the plans for our next build-out phase".

Rasmussen dedicates the final part of his letter to talking about sustainability. The company's third annual sustainability report – included with the 2022 annual report – details how sustainability is integrated into Andfjord Salmon's business strategy, as well as how they document their progress. "The board's expectation to the management team is that every business decision is considered from a sustainability perspective too", he claims. "Because we want to be able to serve our salmon with a clear conscience", he concludes.

Martin Rasmussen, CEO of Andfjord Salmon. Photo: Andfjord Salmon.

About Andfjord Salmon

Andfjord Salmon has developed an innovative and sustainable aquaculture concept for land-based farming of Atlantic salmon, based on a flow-through technology solution. Located at Kvalnes on the island of Andøya on the Arctic Archipelago of Vesterålen, Norway, the company's ambition is to build the world's most sustainable and fish-friendly aquaculture facility of its kind. Andfjord Salmon AS is listed on Euronext Growth.

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