SalMar completes Q1 of 2023 with strong financial results

SalMar attained impressive outcomes with an operating EBIT of NOK 1,884 million in Q1 2023 and a total harvest of 48,500 tons.
SalMar booth at Seafood Global Expo BCN 2023. Photo by: We Are Aquaculture.
SalMar booth at Seafood Global Expo BCN 2023. Photo by: We Are Aquaculture.

SalMar achieved positive outcomes with an operating EBIT (Earnings Before Interest and Taxes) of NOK 1,884 million in Q1 2023 (EUR 160 million / USD 175 million) and a total harvest of 48,500 tons. Additionally, the company maintains its harvest volume forecast for the rest of the year.

These positive figures concluded the financial period, which was favored by the limited growth in Atlantic salmon supply and the combination of strong demand for feed, resulting in record salmon prices.

Frode Arntsen, SalMar's CEO, is grateful to all employees for these results, despite the political uncertainties that are still up in the air. "Amid great political uncertainty, our employees have done an exemplary job in combining the businesses of SalMar, NTS, NRS, and SalmoNor, and capturing synergies. At the same time, great operational performance has been achieved across our business, within farming as well as in sales and industry, in Iceland and Scotland. That is telling for the quality and commitment of the people in our company."

To stand out in the different regions of the Group

In Norway, Fish Farming in Central Norway reported a good quarter with lower costs and a favorable harvest profile, although this was offset by harvest volumes with a higher cost base from Norway Royal Salmon.

Icelandic operations achieved record harvest volumes and continued to perform well.

Finally, in Scotland, the Scottish Sea Farms were low quarterly volumes with improved results compared to the previous quarter.

Thus, regarding the progress of NTS, NRS and SalmoNor were successfully merged into the SalMar operating structure, following the transactions in the Q4 of 2022. For the Q1 of 2023, there were NOK 425 million (EUR 36,86 million/ USD 40,297 million) in annual recurring synergies, which represents 63% of the previously announced target of NOK 671 million (EUR 58,20 million / USD 63,62 million)

Taxes as the hot topic

SalMar explained in its financial report that this increase of almost three times the marginal tax rate in a commercial sector is a lot. Especially when this business sector is the economic base for many areas of Norway and has a competitive market. In addition, it clarified that no other country has imposed anything similar on a part of its food production sector, including seafood.

For this reason, the company explained that it has considered it necessary to set aside all new significant investments in Norway in the future while waiting to see how events unfold and Storting's final decision, but recalls that investments in the sector in other countries depend on it.

SalMar's 2023 outlook

SalMar expects a limited increase in the global supply of Atlantic salmon in 2023 compared to 2022, although it is leaving its harvest volume guidance unchanged this year.

Thus, the harvest volume in Norway is expected at 243,000 tons, in Iceland 16,000 tons, and in Scotland 37,000 tons.

About SalMar

SalMar is one of the world's largest and most efficient producers of salmon. The Group has farming operations in Central Norway, Northern Norway, and Iceland, as well as substantial harvesting and secondary processing operations in Scotland. In addition, the company is operating within offshore aquaculture through the company SalMar Aker Ocean and SalMar owns 50% of the shares in Scottish Sea Farms Ltd.

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