Lerøy posts increased earnings during coronavirus – aiming for 200,000 tonnes harvest volume next year

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Salmon farmer expects to see a fall in costs in the second half of the year.

On Thursday, Lerøy Seafood Group posted its latest Q1 results on the Oslo Stock Exchange with revenues of EUR 481 million, compared with EUR 431 million in the same period of 2019.

EBIT was EUR 74 million compared with EUR 62.7 million, the year before.

“In the first quarter of 2020, earnings for the Farming segment and Wild Catch segment were up from Q1 2019, while earnings for the VAPS&D segment were down,” explained CEO Henning Beltestad.

“The Covid- 19 pandemic started to have an impact on operations in the first quarter, worsening throughout the first quarter and into the second quarter. I am very proud of the Group’s employees, who have found constructive solutions and displayed a wonderful determination, working extremely hard to keep the Group’s value chain open and ensure deliveries to our customers,” he explained.

“At the start of the first quarter, the spot prices for salmon were high. These fell during the quarter, partly due to the impact on demand relating to the restrictions laid down to control the Covid-19 pandemic. What’s more, prices realised were negatively affected by an abnormal high shar of winter ulcers on fish,” added Beltestad.

Lerøy Seafood Group reported higher release from stock costs but expects to see a fall in these costs in the second half in the year.

“Price developments for Atlantic salmon have been highly volatile at the start of 2020, with the ripple effects of the COVID-19 pandemic gradually having a significantly negative impact on demand. While the hospitality/catering market has practically closed, demand on the retail market is good. Prices realised for products, measured according to Norwegian standards, are also affected by increased logistics costs,” he said.

Looking ahead, estimated harvest volume for 2020, including the share from associates, is currently 183,000-188,000 tonnes salmon and trout. The 2021 is to be between 200,000 and 210,000 tonnes.