Bakkafrost gets a hammering after disappointing Q4 results

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Down 8.3 per-cent on the Oslo stock exchange.

This morning, the Faroese salmon farmer Bakkafrost posted fourth-quarter and full-year results for 2020. Expectations, after years of strong numbers, were high. Investment banks expected an average operating profit of EUR 16 million.

However, the report showed significantly lower results.

The operational EBIT of EUR 12 million was 25 per-cent below investment bank’s expectations.

It was the relatively newly acquired Scottish farming business, The Scottish Salmon Company, that got scapegoated. Operating profit in Scotland ended at EUR -0.7 per kilo.

“Biological challenges and increased mortality in several areas resulted in high costs. The company states that DKK-39 million (EUR 5.2 million .ed) relates to incident-based mortality,” wrote Sparebank1 Markets analyst Christopher Robin Vinter in a financial bulletin to his clients.