- Strong utilisation of increased production capacity contributed to record high harvest volume, but results affected by higher costs due to biological challenges and weak price achievement
- Total Operational EBIT for the fourth quarter was NOK 890 million, 15.78 NOK per kg
- Total operational EBIT for Norway for the fourth quarter was NOK 853 million, 16.36 NOK per kg
- Fish Farming Northern Norway continued the solid trend with strong biological and operational performance
- Fish Farming Central Norway had a record high harvest volume, but higher costs related to biological challenges weakens the results
- Sales and Industry with large volumes through its harvesting and processing facilities, but weak price achievement affects results negatively
- Icelandic Salmon post a good result with increased harvest volume, stable cost level and improved price achievement
- SalMar expects increased volume in all regions in 2023. The forecast for Norway is 175,000 tonnes, Iceland 16,000 tonnes, and Scotland 46,000 tonnes
- InnovaNor, Northern Norway’s most modern and efficient harvesting and secondary processing plant, is in operation and will gradually increase output in 2023
- SalMar Aker Ocean formally launched in the fourth quarter with an ambition to create the world’s leading offshore aquaculture company. This company will report as a separate segment from 2023
- The board of directors recommends a dividend of NOK 20 per share for the 2023 financial year
Record high harvest volume and strong capacity utilisation
SalMar made an Operational EBIT of NOK 890 million in the fourth quarter 2023, up from NOK 748 million in the previous quarter. SalMar harvested a total of 56,400 tonnes, which gives an operational EBIT of NOK 15,78 per kg.
“Our team has delivered impressive performance in key areas, resulting in record high harvest volumes in Q4 and for the full year, due to strong utilization of increased production capacity. But results in Q4 are weakened by higher cost related to handling of biological challenges to safeguard fish welfare and weak price achievement, this showcase there is still room for improvements across the entire value chain.” said SalMar’s CEO Gustav Witzøe.
In the fourth quarter 2023 Fish Farming Northern Norway continue to deliver solid results, driven by a consistently solid biological and operational performance and the professional skills of the segments’ employees. Fish Farming Central Norway had a record high harvest volume, but higher costs due to biological challenges weakened the results.
Sales and Industry with large volumes through its harvesting and processing facilities, but weak price achievements weakened the segment’s overall result.
Icelandic Salmon continues the positive development, with good underlying operations and stable cost development. Launch of new brand in August, starting to materialize in improved price achievement contributed to strengthen its result.
Robust platform for further sustainable growth
For over 30 years, sustainable food production has been SalMar’s hallmark, and the company has led the way for the development of a forward-looking Norwegian aquaculture sector. This effort continues unabated. SalMar aims to be the leading salmon producer in both coastal aquaculture as well as offshore aquaculture.
“We are planning significant investments in 2023 to strengthen our platform for further sustainable growth. In total we expect to invest 2.1 billion in our value chain across all regions in 2023, where the main proportion is investments which will give us increased capacity and flexibility to grow our volume,” said Witzøe.
SalMar expect higher volume in all segments in 2023
Growth in supply for Atlantic salmon is expected to be low in 2023. Although the Covid-19 pandemic has created market uncertainty, 2023 and the start of 2023 have shown how robust the salmon market is with strong demand for salmon products.
In the first quarter of 2023 the company expects a slight decline in cost level and lower harvest volume due to seasonality. For the full year 2023, SalMar expects increased harvest volumes in all regions. The forecast for Norway is 175,000 tonnes and Iceland 16,000 tonnes. In associated company in Scotland expected harvest volume is 46,000 tonnes.
SalMar ASA to launch a voluntary offer for all outstanding shares in NTS ASA
On 14 February, it was announced that Salmar will launch a voluntary offer for all outstanding shares in NTS ASA. The offer values NTS’ total equity at approximately NOK 15.1 billion or NOK 120 per share. More than 50% of the NTS shareholders have pre-accepted the offer. The offer will be settled in a combination of cash and shares, and an EGM will be called for in SalMar ASA to authorize the board to issue the relevant equity consideration.
The complete report and presentation for the fourth quarter and 2023 is attached.
SalMar’s CEO Gustav Witzøe and CFO & COO Trine S. Romuld will present the company’s results via a webcast on www.salmar.no. The presentation will commence at 8am CET.
For further information, please contact:
CEO Gustav Witzøe
Tel: +47 911 47 834
Email: [email protected]
CFO & COO Trine Sæther Romuld
Tel: +47 991 63 632
Email: [email protected]
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 Norway, at InnovaMar in Frøya, InnovaNor in Senja and Vikenco in Aukra. In addition, the company is operating within offshore aquaculture through the company SalMar Aker Ocean. SalMar also 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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