“The market for Land Based is still slow and AKVA has not been awarded any new significant contracts so far in 2024.”
Norwegian aquaculture equipment and technology supplier, AKVA Group announced record revenues for the second quarter of 2024, reaching NOK 1.014 billion ($95 million/€86 million), marking an 8% increase compared to the same period last year.
The company’s EBITDA rose from NOK 86 million ($8 million/€7.3 million) in Q2 2023 to NOK 110 million ($10.3 million/€9.4 million) this year.
Despite the revenue growth, the company’s order intake decreased to NOK 888 million ($83.4 million/€75.5 million) in the second quarter, down from NOK 1.840 billion ($173 million/€156 million) the previous year. The order backlog at the end of June 2024 stood at NOK 2.4 billion ($225.6 million/€204 million).
AKVA Group also completed the acquisition of Observe Technologies in early Q3 2024, a move expected to bolster the company’s digital segment.
The Sea Based Technology (SBT) segment was the primary driver of growth, with revenues increasing to NOK 842 million ($79 million/€71.6 million), up from NOK 733 million ($68.9 million/€62.3 million) in the same quarter last year. The segment reported a gross profit of NOK 106 million ($9.96 million/€9.01 million), with a margin of 12.6%.
In contrast, the Land Based Technology (LBT) segment saw a decline in revenues to NOK 137 million ($12.9 million/€11.7 million), resulting in a negative gross profit of NOK 1 million ($94,000/€85,000). The company noted ongoing challenges in this segment but expects gradual improvement in the Norwegian post-smolt market later in 2024 and into 2025.
“The market for Land Based is still slow and AKVA has not been awarded any new significant contracts so far in 2024,” noted the company.
AKVA Group’s balance sheet revealed an equity ratio of 30.5% at the end of Q2 2024. The company has decided not to distribute dividends in the second half of 2024 but remains optimistic about strong salmon prices and a gradual recovery in the post-smolt market in Norway by year-end.
Looking ahead, AKVA Group anticipates growth in the land-based segment in China, projecting more progress and interest compared to recent years. The company aims to achieve a revenue of at least NOK 3.6 billion ($338.4 million/€306 million) and an EBIT margin of 4-5% for 2024.
