Leroy sees Q1 profits increase

Leroy CEO Henning Beltestad

LERØY Seafood, co-owners of Scottish Sea Farms operations, today reported a substantial increase in revenues and operational profits for the first quarter of this year.

Income was up from 4,746 million kroner (£381-million) in Q1 2019 to NOK 5,305 million (£426m)million this time, while the operating profit before fair value adjustment related to biological assets was NOK 816 million (£65m) compared with NOK 619 million (£50m) 12 months earlier.

CEO Henning Beltestad said:

\’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. 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.\’

The Farming segment reported operating profit before fair value adjustment related to biological assets of NOK 562 million in Q1 2020, compared with NOK 510 million in Q1 2019. During the quarter, the Farming segment harvested 39,000 tonnes, compared with 32,000 tonnes in Q1 2019.

Beltestad continued:

\’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 share of winter ulcers on fish.\’

The Lerøy Seafood Group, which also owns one of Norway’s largest white fish trawler fleets, said 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. It added:

\’While the hospitality and 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.\’


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