SalMar - Satisfactory financial results despite a period marked by biological challenges

Operational EBIT for Norway was NOK 1,082 million in the third quarter of 2024. The harvest volume was 56,400 tonnes, and operational EBIT per kg was NOK 19.2.
Operational EBIT for the group was NOK 1,041 million in the third quarter of 2024. The harvest volume was 60,300 tonnes, and operational EBIT per kg was NOK 17.3.
The farming segments in Norway were affected by biological challenges during the quarter, and volume expectations for 2024 have been reduced.
Sales and industry reported historically strong results, where the efficient and flexible operational setup, along with the contract share, positively impacted the results.
SalMar Aker Ocean completed the harvest of the remaining volume in 2024, and the production cycles for both Ocean Farm 1 and Arctic Offshore Farming are well underway, with planned harvesting in 2025.
Icelandic Salmon continued to be affected by low volume and high costs.
Scottish Sea Farms reported another good quarter with increased harvest volume, higher harvest weight, and good biological status in the sea across all regions.

“Although the results are affected by challenges at sea, the results also show that the structure we have at SalMar is solid and rigged to handle challenging periods, which makes the financial results acceptable during the period. Going forward, we are fully focused on improving performance and realizing the potential we see in the value chain”, says Frode Arntsen, CEO of SalMar ASA.

Strengthening our presence in Norway

In November 2024, SalMar entered into an agreement to acquire a controlling interest in AS Knutshaugfisk through a combination of shares and cash. AS Knutshaugfisk currently has 3,464 tonnes MAB in licenses and four farming sites in production area six in Central Norway.

“Knutshaugfisk is a well-run family company with which we have developed a close and value-creating collaboration over many years. SalMar's acquisition of a significant stake in the company is a natural continuation of this collaboration”, says Arntsen.

The completion of the transaction is subject to regulatory approvals and is expected to be completed in January 2025.

Significant potential for cost savings identified in the value chain

After realizing synergies following the acquisition of NRS, NTS, and SalmoNor in 2023, SalMar analyzed the entire value chain in 2024 to optimize the new company further. This work has identified NOK 1.2 billion in potential savings in the value chain. Through improved operational structure and increased efficiency, this is expected to be realized by 2029.

“ The work ahead to further improve operations and increase efficiency in all parts of the company will make us even stronger going forward. We see strong demand for our products, and our job is to produce them as efficiently and sustainably as possible”, says Arntsen.

Volume guidance and outlook

Volume guidance for 2024 has been reduced due to the biological challenges experienced, and it is now expected to be 217,000 tonnes in Norway. SalMar Aker Ocean has completed harvesting for the year and lands at 6,900 tonnes. Iceland remains unchanged at 13,000 tonnes. Scottish Sea Farms increases volume guidance for 2024 by 3,000 tonnes and expects 40,000 tonnes (100% basis). Considering the relative share in Scottish Sea Farms, a total of 257,000 tonnes is expected for the group.

For 2025, it is expected 254,000 tonnes in Norway, 9,000 tonnes from SalMar Aker Ocean, 15,000 tonnes in Iceland, and 32,000 tonnes in Scottish Sea Farms (100% basis). Considering the relative share from Scottish Sea Farms, a total of 294,000 tonnes is expected for the group, a 14 percent increase in harvest volume compared to 2024.

As a result of the acquisition of Knutshaugfisk and the purchase of volume on the traffic light earlier this year, the volume potential for SalMar has increased to 370,000 tonnes, considering the relative share in Scottish Sea Farms.

“We consider ourselves well-positioned to realize the potential we have in the value chain going forward. Although we have experienced challenges in 2024 that have affected harvest volumes, we are adapting to the challenges we have experienced through measures across the value chain and are confident in reaching our volume potential”, concludes Arntsen.

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

SalMar's CEO Frode Arntsen and CFO Ulrik Steinvik will present the company's results today at 08:00 CET at Hotel Continental in Oslo. The presentation will also be available on webcast on 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.

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