Biological Challenges and reduced volume expectations
Norwegian salmon heavyweight SalMar delivered operational EBIT of NOK 1,041 million ($93.69 million/€88.49 million) in the third quarter of 2024, supported by strong results in sales and industry operations.
The group’s harvest volume totaled 60,300 tonnes, yielding an operational EBIT of NOK 17.3 ($1.56/€1.48) per kg. In Norway, operational EBIT reached NOK 1,082 million ($97.38 million/€91.97 million) on a harvest volume of 56,400 tonnes, with an EBIT per kg of NOK 19.2 ($1.73/€1.63).
The quarter was marked by biological challenges across Norwegian farming operations, prompting a downward revision of SalMar’s 2024 harvest volume guidance to 217,000 tons.
However, sales and industry operations offset these pressures with efficient operations and a strong contract share. SalMar Aker Ocean completed its 2024 harvest at 6,900 tons, while Icelandic Salmon continued to face high costs and low volumes. Scottish Sea Farms reported a positive quarter, citing increased harvest volumes, higher harvest weights, and favorable biological conditions.
SalMar has identified NOK 1.2 billion ($108 million/€102 million) in potential cost savings across its value chain, following its 2023 acquisitions of NRS, NTS, and SalmoNor. These efficiencies, expected to be realized by 2029, are part of an ongoing effort to optimize operations and enhance sustainability.
For 2025, SalMar expects group harvest volumes to reach 294,000 tonnes, including contributions from its operations in Norway (254,000 tonnes), SalMar Aker Ocean (9,000 tonnes), Icelandic Salmon (15,000 tonnes), and Scottish Sea Farms (32,000 tonnes on a 100% basis).
This would represent a 14% increase over 2024 volumes. The company’s long-term volume potential, including the Knutshaugfisk acquisition and additional capacity acquired earlier this year, is estimated at 370,000 tonnes.
Despite challenges, CEO Frode Arntsen expressed confidence in SalMar’s ability to adapt and achieve its potential. “While biological issues have impacted this year’s results, we remain focused on improving performance across the value chain and meeting strong market demand for our products,” he said.
