Leroy delivers best ever first half

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Leroy Seafood Group achieved an operating profit before value adjustments of biomass of €86 million, equivalent to €2.94 per kilo.

“Prices for salmon and trout are still at a high level, and with this as the main driver, Leroy Seafood Group has achieved the highest turnover and the highest operating profit in the history of the Group,” says Henning Beltestad, CEO.

More fish
As previously communicated, the volume of salmon and trout harvested is lower than at the same time last year, but for the year as a whole, a higher volume is expected compared with 2016.

In the second quarter of 2017, Leroy Aurora achieved an operating EBIT of €3.32 per kilo. For the same period, Leroy Midt and Leroy Sjotroll reported EBIT per kilo €1.99 and €2.23 respectively.

In the second quarter of 2017, the Group’s costs were affected by a low harvest volume, higher feed costs, and high direct and indirect costs associated with keeping within the limits for salmon lice imposed by government. “In sum, this results in higher costs than we consider to be a normal level,” explains CEO Beltestad, adding. “but, we see signs that the measures implemented by the Group are having positive effects and will result in lower costs in the long term.”

Whitefish
Whitefish investment, through Havfisk and Norway Seafoods, contributed €9.2 million in the quarter.

“Havfisk and Leroy Norway Seafoods are important companies and support the Group’s long-term industrial strategy. We look forward to creating lasting value by developing the businesses through long-term industrial thinking and believe we will succeed with our employees at sea and in land. The recent ‘tabloid’ debate on regulatory issues has unfortunately been strongly influenced by short-term thinking,  fear, and lack of understanding of what industrial development requires. I trust that the national authorities will now back our workforce in the future. Good framework conditions, based on understanding of what is required to maintain and create jobs and values, increases our chances of success in the coming years,” says Beltestad.

For 2017, the Group expects a harvested volume of salmon and trout of 175,000 tonnes, including the share of LSG’s volume from associated companies, and a catch volume of more than 60,000 tonnes.