Bakkafrost releases its full year report for 2024 and a trading update for the first quarter of 2025.
Bakkafrost reports a strong start to 2025 after "solid" results detailed in annual report
The Bakkafrost Group has released its preliminary results for the first quarter of 2025, in addition to its annual integrated report, in which the Faroe Islands-based company described 2024 as "a year of strong biological performance and strategic execution for Bakkafrost".
"While we faced external challenges, including market volatility and a general strike, we continued to strengthen our operational foundation, ensuring sustainable long-term growth. Effective risk mitigation strategies and investments in our value chain have positioned us well for the future," the report stated.
Bakkafrost ended 2024 with total revenues of DKK 7.3 billion (approximately EUR 980m / USD 1.06bn) and an operational EBIT of DKK 1.55 billion (EUR 208m / USD 224m).
The company harvested 90,700 tonnes of salmon in 2024, a 24% increase compared to 2023. Faroese operations fared particularly well, delivering high growth and good biological results. In Scotland, biological performance improved notably, supported by the ramp-up of high-quality smolt production at Applecross and effective sea lice treatments, the company said, noting that it had seen "record-low" sea lice levels across all its locations in 2024.
Strategic investments and continued focus on "large smolt strategy"
Bakkafrost continues to execute its five-year investment plan (2024–2028), totalling DKK 6.3 billion (EUR 846m / USD 913m), which aims to grow annual harvest volumes to 165,000 tonnes by 2028. The group is currently scaling up production at its Applecross Hatchery in Scotland, as well as expanding its Skálavík Hatchery in the Faroes to increase smolt production capacity to 24 million annually.
In the Faroe Islands, 17.1 million smolts (avg. weight: 410g) were transferred in 2024, with plans to increase to 18.5 million smolts of an average weight of 430g in 2025. In Scotland, the smolt release is projected to reach 10 million in 2025.
"The transition to large, high-quality smolt in Scotland is now well underway, with Applecross supplying high-quality smolt above 200g. During 2025, most of our old 'legacy' fish in the marine sites will be replaced with large-high-quality smolt from Applecross, which is expected to reduce biological risk significantly, most notably from 2026 and onward," Bakkafrost stated.
On sustainability, Bakkafrost said it remains committed to the UN Global Compact and the Sustainable Development Goals (SDGs), aiming to cut Scope 1 and 2 emissions by 50%, and Scope 3 emissions by 52% per product sold by 2030, including through its ongoing wind energy partnership with Faroese energy supplier EFFO.
Outlook for 2025
Looking ahead, Bakkafrost forecasts a total harvest of approximately 97,000 tonnes in 2025, 77,000 tonnes of which will come from the Faroe Islands and 20,000 tonnes from Scotland. The company said around 61% of its Scottish harvest and 45% of its Faroese harvest are scheduled for the first half of the 2025.
In the FOF segment, feed production is expected to grow to 150,000 tonnes, with nearly all of this to be used internally. Bakkafrost said it expects its fishmeal and oil production to remain stable, depending on raw material availability.
Q1 trading update shows improved performance compared with last year
On 1 April, the Faroese company released its trading update for Q1 2025, showing it has harvested 18,900 tonnes of salmon in the Faroe Islands, a 32% increase compared with the same period last year. Average fish weight reached 5.1kg.
Meanwhile, in its Scottish farming operations, Bakkafrost's first quarter harvest volume totalled 6,300 tonnes, down from 7,300 tonnes in Q1 2024. Depiste this, the average weight per fish increased to 6.7kg.
Bakkafrost reports that in its freshwater operations, 3.2 million smolts were released in the Faroe Islands and 0.6 million in Scotland during the quarter, supporting future volume growth.
In its Fishmeal, Oil and Feed (FOF) segment, Bakkafrost sourced 109,500 tonnes of marine raw materials in Q1 2025, down from 136,900 tonnes in Q1 2024. Despite this decline, feed sales increased by 4,000 tonnes compared with the same period last year, reaching 31,000 tonnes. No fish oil was sold in Q1 2025, while fishmeal sales totalled 3.6 thousand tonnes.
Bakkafrost's full Q1 2025 report will be released on 19 May.
