Bakkafrost recorded revenues of DKK 1,562 million in the fourth quarter of 2023, compared with DKK 1,940 million in the corresponding quarter of 2022.
Full-year revenues in 2023 were DKK 7.1 billion with harvest volumes of 73,000 tonnes.
“Bakkafrost delivered strong results in the fourth quarter 2023 with an improved operating margin. Markets have been strong, with high demand in all regions,” said Regin Jacobsen, CEO, Bakkafrost.
”Bakkafrost salmon was well appreciated with good premium in the market, especially strong development in North America, which increased to 25% of the salmon from Bakkafrost Faroe Islands.”
Forward focus
Mr Jacobsen said that the high focus on fish health and welfare in Bakkafrost’s operation in the Faroe Islands, which have resulted in a very robust and strong farming regime.
The average monthly survivability for the full year was 99.39% with average harvest weight of 4.6 kg HOG and 90% superior grade.
But Mr Jacobsen pointed out that in Scotland Bakkafrost’s journey to robust operation is still in progress – last year the monthly survivability was 98.29% with average harvest weight of 4.2 kg HOG and 89% superior grade.
”After a troublesome third quarter in Scotland with biological challenges – the fourth quarter gave opportunities with good biological development to grow the fish, resulting therefore in reduced harvest volumes, concentrating on growing into H1 2024 to larger sizes,” he said.
Last year, Bakkafrost announced a 6.3bn DKK investment plan in Scotland for 2024-2028. The investments are intended to enable a transformation of the Scottish operation and provide sustainable growth in the Faroe Islands, as well as nationally.
The main purpose of the investments in Scotland is to replicate Bakkafrost’s successful operation in the Faroe Islands.
Bakkafrostis looking at building two large energy-efficient hatcheries in Scotland, enabling the implementation of Bakkafrost’s large smolt strategy and giving an annual production capacity above 15 million smolts at 500g.
Mr Jacobsen said that having large smolt in Scotland will transform the performance, lower the biological risk and increase harvest volumes.
In addition to building hatchery capacity, Bakkafrost plans to build a new processing plant to strengthen processing capabilities and increase flexibility in operation helping grow total annual harvest volumes to 165,000 tonnes in 2028.
