SalMar booth at Seafood Global Expo BCN 2023.
Photo: We Are Aquaculture.
SalMar today reported its results for the fourth quarter of 2024, noting that biological conditions and performance improved significantly towards the end of the year, offering better prospects for 2025. The Norwegian salmon company thus closed a challenging fiscal year with an eye on what is to come where, among other recent developments, a new acquisition is on the horizon.
If we talk about figures, in Q4 2024 SalMar's operating EBIT in Norway was NOK 1,485 million, with a harvest volume of 67,300 tons, and an operating EBIT per kg was NOK 22.1. For the whole Group, the operating EBIT was NOK 1,489 million, with a harvest volume of 73,800 tons, and an operating EBIT per kg was NOK 20.2.
These results, which the company described as "satisfactory," are certainly better than those of Q3 2024, but also significantly lower than those of fiscal 2023 when SalMar Group's operational EBIT in Q4 was NOK 2,193 million. This means that year-on-year, earnings before interest and taxes have fallen by 32.1% for the last quarter of the year.
The figure increases by a further point to -33% if we talk about the full year, as in FY 2024 the Group's operational EBIT was NOK 5,429 million, while in FY 2023 it had been NOK 8,159 million. However, the company reported that "based on good financial results and a solid financial position," the board proposed a dividend of NOK 22.00 per share for the financial year 2024.
Despite this drop in profits, as said above, the Norwegian salmon producer highlighted the positives like the production segments in Norway developing well throughout the quarter and delivering solid results. The same was true of sales and industry which, according to the company, contributed positively with their efficient and flexible operational setup.
Regarding the other segments, SalMar said that Icelandic Salmon - parent company of Arnarlax and its subsidiaries - was still affected by events in early 2024, but noted that the result is better than in previous quarters.
For its part, Scottish Sea Farms - a joint venture in which SalMar has 50% ownership - reported another good quarter with an increase in harvest volume, high harvest weight, and good biological condition in the sea in all regions.
Finally, on Salmar Aker Ocean, the company said that both Arctic Offshore Farming - acquired in December 2023 - and Ocean Farm 1 production cycles are on track, with harvests planned for the first and second quarters of 2025.
All in all, SalMar ASA CEO Frode Arntsen gave a positive assessment of Q4 2024. "Throughout the quarter, we have seen good biological development in the sea, especially in Northern Norway," he said. "Together with the solid structure we have in SalMar, and thanks to our employees who have handled a challenging year in an impressive way, we deliver good financial results in the period. With better biological status, the outlook for 2025 looks brighter compared to last year."
The setbacks of 2024 have not dampened Norwegian salmon farmer's confidence about its future plans and, in its Q4 results presentation, the company said it has "great faith in and willingness to invest in profitable and sustainable salmon production in Norway," and has taken steps that will further strengthen its position.
Earlier this month February 2025, the acquisition of a majority stake in AS Knutshaugfisk was completed, a deal that was already announced in November during the Q3 results presentation. A well-established family-run company, Knutshaugfisk currently owns 3,466 MTB tons in licenses and four growing locations in production area 6 in central Norway.
Now, the company has announced that a new acquisition is on the horizon. As recalled in its quarterly results release, since the purchase of NTS and the merger with NRS in 2022, SalMar has held a 37.5% stake in Wilsgård AS. Just this month, SalMar ASA and Wilsgård Sea Service AS - which together own 75% of the shares in Wilsgård AS - agreed to work hand in hand to further develop their ownership interests in Wilsgård.
This, said the Norwegian salmon farming giant, includes a consolidation with SalMar. Wilsgård currently has a strong presence in Senja and holds 5,844 MTB tons in licenses in production areas 10 and 11 in northern Norway.
"Wilsgård AS is a well-run company based on Senja. They operate in one of SalMar's core areas, which is one of the best areas in the world for farming. Over many years, SalMar has had a good relationship with the company," SalMar CEO, Frode Arntsen, explained.
Regarding the rest of what is to come, SalMar stressed that it has several initiatives underway throughout the value chain and heavy investments on the horizon with the aim of improving results both biologically and financially. Specifically, he said that by 2025, he expects to invest NOK 1,900 million, with the majority of the investments related to fish welfare.
For the year just begun, the company maintains its volume forecast of 254,000 tons in Norway, 9,000 tons at SalMar Aker Ocean, 15,000 tons in Iceland, and 32,000 tons at 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 will represent a 17% increase in harvest volume compared to 2024. SalMar also said it experiences strong demand for its products and expects low global supply growth in 2025.
"We see significant opportunities for improvement, cost reduction, and growth in all parts of our business, and we consider ourselves well-positioned to realize this potential. We have experienced challenges in 2024 that have affected harvest volumes, but we are taking steps, adapting, and improving throughout the value chain," CEO, Frode Arntsen, concluded.
