Lerøy Seafood Group has reported solid results for the second quarter of 2024 despite a reduction in wild catch and a decline in salmon prices.
The company attributes innovative sea lice treatments in helping it achieve a consolidated operational EBIT of NOK 906 million (€77.29 million) in Q2.
“The positive trend in biological performance has continued into the second quarter, and we are performing well in a quarter characterised by declining salmon prices,” said chief executive, Henning Beltestad.
“The number of lice treatments has been significantly reduced, and growth and survival rates have substantially increased compared to the average over the past five years.”
Five years ago the company began exploring new ways of addressing the presence of sea lice and this month harvested its first salmon from submerged cages.
“This innovative technology is showing very promising results, and we believe it will be an important growth driver for Lerøy going forward,” said Beltestad.
The segment for value-added processing, sales & distribution (VAP S&D) reported an operational EBIT of NOK 217 million (€18.51 million) in Q2 2024.
However the wild catch segment reported an operational EBIT of NOK -4 million, a significant loss compared to the same quarter last year. “The outlook for wild catch is very challenging due to significant quota reductions in recent years, said Beltestad.
“The quota advice for 2025 indicates further cuts. This development is undoubtedly challenging for this part of our business.”
Despite lower salmon prices, Beltestad remains positive for the future. “We are on track to achieve our ambitious 2025 goals for both farming and VAP S&D,” he said.
“We are seeing increasing demand for an integrated value chain with a strong sustainability profile, and we see significant potential to increase earnings in our European downstream operations.”
