Bakkafrost bounces back in Q2, but Scotland still proves difficult

Despite a much improved group result, thanks to the Faroe Islands, the Bakkafrost operation in Scotland remains difficult.

Bakkafrost Faroe islands produced a large increase in revenues – up from DKK 1,144 million (£130m) Danish kroners last year to DKK 1,613 million (£184m) this time.

The Faroese operational EBIT or profit almost doubled from DKK 211 million (£24m) to DKK 411 (£47m) million.

But the Scottish result saw revenues fall from DKK 431 million (£49m) to 213 million (£24m) this time. The division made an operational EBIT or operational loss of DKK -139 million (-(£16m)slightly better than a year ago when the figure was DKK -146 million (£16m).

Commenting on the result, Jacobsen said: “Overall, we are satisfied with the clear improvement in operating performance in the second quarter.

“The Group delivered operational EBIT of DKK 273 million (£31m) , compared with DKK 65 million (£7m)in the same quarter last year. Cash flow from operations also improved significantly to DKK 273 million (£31m).

“The result was driven by strong biological and operational performance in the Faroe Islands. Harvest volumes increased by 67%, average harvest weights remained high, and farming costs at site declined. This reflects the value of good biological control, disciplined operations and our integrated value chain.

“The Faroese freshwater operations maintained high production and capacity utilisation, transferring 5.6 million large, high-quality smolt during the quarter. An important milestone was reached at the new hatchery in Skálavík, where the first eggs were introduced in June.”

He added: “We are not satisfied with the result in Scotland. Harvest volumes were substantially lower, and biological challenges affecting one batch of fish originating from externally sourced smolt had a significant impact on the result. Although these challenges were concentrated in this batch, biological performance at most other sites was stable.

“Applecross continued to ramp up production, and the result from our Scottish freshwater operations improved year-on-year.

“Our priorities remain unchanged: strengthen biological control, improve cost efficiency and restore stable production volumes in Scotland, while maintaining disciplined execution of our investment programme. We maintain our 2026 harvest guidance of 117,000 tons.”

Jacobsen said the salmon market remained challenging. Global supply increased by 7%, partly reflecting inventory movements, and salmon prices declined materially from the first quarter. Demand, however, remained solid across our main markets. With supply growth expected to slow materially in the second half of 2026, the market balance is expected to improve.

He added: “Exceptional inflation in feed raw material costs requires adjustments to sourcing and feed formulations. Our strong inventory position and integrated value chain give us greater flexibility to manage these conditions. They do not eliminate our exposure to raw material inflation, but they strengthen our ability to secure supply, adapt formulations and mitigate the impact.”