Bakkafrost (BAKKA) investor relations material

Executive summary

• Revenue for Q2 2025 was DKK 1,575 million, down 24% year-over-year, with operational EBIT at DKK 65 million, reflecting a sharp decline due to lower salmon prices and exceptional mortality in Scotland.

• Faroe Islands harvest volumes increased 57%, while Scotland's declined 38%; total Q2 2025 harvest was 23,054 tonnes, up 7% year-over-year.

• Profit after tax was negative DKK 138 million, and adjusted EPS was negative; net profit for the period was DKK 53 million, compared to a loss of DKK 138 million in Q2 2024.

• Cash flow from operations was negative DKK 204 million, with net debt rising to DKK 3,824 million and a dividend of DKK 8.44 per share (total DKK 501 million) paid out.

• The company maintained its dividend payout and continued investing in capacity expansion despite negative cash flow.

Financial highlights

• Operational EBIT dropped from DKK 388 million last year to DKK 65 million; operational EBITDA was DKK 258 million, down from DKK 556 million.

• Adjusted EPS for Q2 2025 was DKK -0.10, down from DKK 4.80 in Q2 2024.

• Equity ratio stood at 59%, down from 63% at the end of 2024.

• Cash and cash equivalents at quarter-end were DKK 25 million.

• Net interest-bearing debt increased to DKK 3,824 million, mainly due to investments, dividend payout, and working capital changes.

Outlook and guidance

• 2025 harvest volume guidance raised to 104,000 tonnes (Faroe Islands: 82,000; Scotland: 22,000), with smolt transfer expected at 18.5 million in Faroes and 6–7 million in Scotland.

• Global salmon supply expected to grow 9% in 2025, but European supply growth to slow in 2H 2025 due to license constraints.

• Growth target remains 162,000–165,000 tonnes by 2028–2030, with a DKK 5.0bn investment plan for 2026–2030; some 2025 investments postponed to 2026.

• Lower raw material prices expected to benefit farming costs in the second half.

• Value-added product contract exposure reduced in response to Faroese revenue tax changes.