Jellyfish and hard winter hits SalMar Q1 profits
Norwegian salmon giant SalMar continued to be troubled by tough winter conditions and jellyfish attacks during the start of this year, the group’s first quarter results show.
These problems, along with extreme weather at times, left their mark on farming conditions in Norway between January and March.
SalMar produced a group operational EBIT or operational profit of NOK 1,512 million (almost £112m) against NOK 1,884m (£138m) 12 months earlier.
Group revenues were down too – from NOK 6,792 million (£499m) in Q1 2023 to NOK 6,555 million (£482m) this time.
The group harvest was up by over 4,000 tonnes to 52,900 tonnes.
Today’s report said: “The farming segment in Norway was significantly affected by the jellyfish attacks and extreme weather this winter.
“Low superior share and low average slaughter weight in the quarter, particularly in northern Norway, affected both cost level and price achievement.
“Sales and industry demonstrated the strength of its operating model and organization at the slaughterhouse and further processing plants.
“Significant volumes of fish characterized by biological challenges were handled. The contract share was 39% with a negative contribution.”
SalMar’s CEO Frode Arntsen told investors: said: “The first quarter was challenging in many ways. We were once again reminded that we must work together with the forces of nature.
“Our ability to understand biology and the environment is of great importance to our operational and financial results. That is why we strongly believe that our many improvement initiatives, including the Salmon Living Lab, are crucial for SalMar’s continued success, and for our industry as a whole.
The CEO added: “At SalMar, we take a positive view of the aquaculture industry’s opportunities. We are concerned with developing our business in a sustainable way and creating value for society and our various stakeholders.
“We see significant untapped potential for further growth in the industry and want to lead the development further because food does not go out of style – the world needs more.”
