Lerøy reports strong fourth quarter as operational improvements take effect.
Lerøy Seafood Group reported an operational EBIT of NOK 799 million ($71 million) for the fourth quarter of 2024, reflecting higher harvest volumes, improved operations, and near-maximum license utilization. The company confirmed that it remains on track to meet its 2025 targets.
The Farming segment delivered an operational EBIT of NOK 594 million ($53 million) for the quarter, supported by the highest biomass production at sea in the company’s history. CEO Henning Beltestad noted that operational improvements implemented since 2022 are now translating into stronger financial results.
Increased Investment in Shielding Technology
Lerøy continues to expand its use of submerged cage shielding technology, reporting an 85% reduction in lice treatment frequency compared to traditional farming. The company plans to invest NOK 500 million ($44 million) in shielding technology in 2025, with 40% of salmon harvested using the method.
VAP S&D Segment Achieves Record Earnings
The VAP, Sales & Distribution (VAP S&D) segment posted its highest earnings to date, reporting an operational EBIT of NOK 275 million ($24 million) for Q4 and NOK 888 million ($79 million) for the year. Lerøy attributed the performance to greater operational efficiency and higher utilization of its integrated value chain.
Wild Catch Impacted by Low Quotas
The Wild Catch segment recorded an operational EBIT of NOK 6 million ($530,000) for Q4 and NOK 130 million ($11 million) for 2024. Beltestad noted that the company continues to maximize value despite historically low quotas.
Sustainability Initiatives and 2025 Outlook
Lerøy aims to reduce greenhouse gas emissions by 46% by 2030, with a key focus on the carbon footprint of fish feed. The company has partnered with EWOS to incorporate by-products from European chicken production into its feed, an initiative expected to reduce emissions by up to 16%.Looking ahead, Lerøy forecasts a harvest volume of approximately 195,000 GWT in Norway and 16,000 GWT from Scottish Seafarms in 2025.
The company also expects further earnings growth in VAP S&D, targeting an operational EBIT of NOK 1.25 billion ($110 million).A dividend payment of NOK 2.50 per share will be proposed at the Annual General Meeting on May 27, 2025, in line with the previous year.
