SalMar – Positive biological development after a challenging winter season

Operational EBIT for Norway¹ was at NOK 1,466 million for the second quarter 2024. Harvest volume was 44,100 tonnes and operational EBIT per kg was NOK 33.2.
Operational EBIT the Group was NOK 1,393 million for the second quarter. Harvest volume was 44,800 tonnes and operational EBIT per kg was NOK 31.1.
The Fish Farming segment in Norway showed improved biological performance, but harsh winter conditions and extreme weather earlier in the year continued to negatively impact the superior share and price achievement, particularly for Farming Northern Norway.
Sales and Industry continued to demonstrate its efficient and flexible operational set-up. The contract share was 46 per cent, which combined with high spot prices resulted in negative contribution.
Icelandic Salmon reported high cost due to continued biological challenges in the quarter and low harvest volume, affecting results.
SalMar Aker Ocean successfully transferred smolt for a new production cycle at Ocean Farm 1 in the quarter, with planned harvest in 2025.
Scottish Sea Farms reported a solid quarter with increased harvest volume, improved weights, and strong biological status in all regions.

“SalMar showed solid operational performance, improved biological results and delivered acceptable financial results in a period marked by the aftermath of a challenging winter season. Strong commitment from all segments has resulted in a positive development of key performance indicators.” said Frode Arntsen, CEO of SalMar ASA.

Sustainable growth

“In parallel we have taken several decisions aimed at delivering on our ambitions to deliver sustainable growth. We acquired additional production capacity in a recent government managed auction in Norway and we been granted 10,000 tons of MAB in Iceland” Arntsen said.

In June, SalMar was named by Time magazine as one of the world’s most sustainable companies, demonstrating its commitment to sustainability. And also in June, SalMar made both its RCF and Term Loan sustainability linked by connecting four ESG KPIs to its financing.

In August SalMar launches its updated green bond framework to finance sustainable initiative throughout the value chain. The updated green bond framework is available from our website.

“We are proud to receive such recognition and awards and note with appreciation that our efforts are also well received by the capital market. Our revolving credit facility and term loan are now linked to certain ESG performance indicators, and we have published updated green bond framework for which S&P Global Ratings has provided a second party opinion of alignment with internationally well respected methodology,” Arntsen said.

Appointed Head of Salmon Living Lab

In March 2024, SalMar launched Salmon Living Lab, an ambitious innovation and R&D initiative together with Cargill, a global food corporation and aquaculture feed supplier, aimed at finding and developing more sustainable solutions for salmon farming. The initiative has attracted strong interest from various companies in the value chain, NGOs and other stakeholders that are eager to contribute.

In August 2024, Kristine Hartmann, currently Director of Development at SalMar Aker Ocean, was appointed head of Salmon Living Lab. She will lead the development of the initiative going forward and key milestones will be communicated from the website www.salmonlivinglab.no.

Volume guiding and outlook

The harvest guidance for Norway remains unchanged at 237,000 tonnes in Norway, 7,000 tonnes from SalMar Aker Ocean and 37,000 tonnes in Scotland (100% basis). Iceland is reduced to 13,000 tonnes.

“We consider ourselves well prepared to continue our growth. We celebrate our achievements, but there is no time to rest. Therefore, we are currently in the process of reinforcing and renewing our efforts to further improve operational control and improve efficiency in all parts of the company and along the entire value chain,” Arntsen concluded.

The complete report and presentation for the second quarter is attached.

SalMar's CEO Frode Arntsen and CFO Ulrik Steinvik will present the company's results today at 08:00 CEST at Hotel Continental in Oslo. The presentation will also be available on webcast on www.salmar.no (http://www.salmar.no).

For further information, please contact:

Frode Arntsen, CEO
Tel: +47 482 06 665
Email: frode.arntsen@salmar.no

Ulrik Steinvik, CFO
Tel: +47 900 84 538
Email: ulrik.steinvik@salmar.no

Håkon Husby, Head of Investor Relations
Tlf: +47 936 30 449
Email: hakon.husby@salmar.no

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 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.

See www.salmar.no for more information about the company.

This information is subject to the disclosure requirements stipulated in section 5-12 of the Norwegian Securities Trading Act.

¹ Results from Norway are group results excluding segments SalMar Aker Ocean and Icelandic Salmon.

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