Lerøy unveils strong Q2 results but low prices take their toll

The group, which also includes deep sea fishing and trout farming in its business portfolio, produced revenue of NOK 8,826 million (£649m) against NOK 7,649 million (£562m) over the same period a year ago.

Lerøy CEO Henning Beltestad said operating profit in the second quarter was NOK 680 million (£50m), which reflected good operations in all segments.

He said: “The quarter illustrates the robustness of our business model, with a fully integrated value chain in a diversified seafood company.

“Lerøy had the highest net growth ever in a second quarter. The survival rate is high, the fish is of good quality and the average slaughter weight has increased, while the cost per kilo is falling.”

The Lerøy report said: “The group’s revenues increased 15% year over year, despite a significant year-on-year decline in salmon and trout prices, reflecting increased harvest volume in the farming segment and increasing sales volume in the VAPS&D [Value-Added, Process, Sales & Distribution] segment. 

"Revenue for the wild catch segment increased due to higher prices and reduced inventory.

“The Group’s operational EBIT was down 25% compared with the same period last year. Profitability in the Farming segment fell sharply, as a significant drop in salmon and trout prices outweighed both a 33% rise in harvest volume and lower cost per harvested kilogram.”