NRS posts €6 million EBIT for operations in first quarter: “We are not satisfied”

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Norway Royal Salmon (NRS) currently reports an operational EBIT for the first quarter of 2021 of EUR 6 million and an EBIT per kg of EUR 6.3. The corresponding figure from the same quarter last year was EUR 7.4 million and EUR 1.6 million.

“This is the first quarter the Icelandic farming company Arctic Fish has been
consolidated in the NRS group. Arctic Fish has had a very good development in production costs and the company is harvesting more and more salmon. Arctic Fish is a growing company, and harvest volumes are expected to increase substantially in the coming years. Recently, Arctic Fish was awarded new licenses, which will support the company’s future growth ambition to harvest 24 000 tonnes in 2025. For the farming operations in Norway, we are not satisfied with the production cost in the quarter, and still have too much variation between our best and worst sites. In the first quarter, the salmon price was significantly lower than in the same quarter last year, but higher than in the previous quarter. On the other hand, the price increased during the quarter and has continued to increase after the end of the quarter,” said CEO Charles Høstlund.

Analysts were expecting an EBIT of EUR 8.7 million in advance, according to the financial news site TDN Direkt.

Net cash flow from operations was positive with EUR 15.7 million in the quarter.

Farming Norway achieved an operational EBIT of EUR 7.6 million. Operational EBIT per kg gutted weight was EUR 0.6 with a volume of 11,623 tonnes gutted weight in the quarter. This is 115 per-cent higher volume than the corresponding quarter last year. Volume sold from the sales business in the quarter was 21,463 tonnes of salmon, which is 20 per-cent higher than the corresponding quarter last year.

Farming Iceland achieved an operational EBIT of EUR 2.1 million. Operational EBIT per kg gutted weight ended at EUR 0.5. Aquaculture Iceland harvested a volume of 3,793 tonnes gutted weight in the quarter, which is 340 per-cent higher than the corresponding quarter last year.