Andfjord Salmon (ANDF) Q1 2025 earnings summary

Executive summary

• Achieved major milestones at Kvalnes, including seawater filling of the outlet tunnel and successful infrastructure testing, advancing operational readiness for land-based salmon farming.

• Optimized build-out plan increased Kvalnes production capacity by 20%, raising expected output from 8,000 to 11,000 tonnes (HOG + post-smolt) for Phase 1 and total site output from 19,000 to 23,700 tonnes under the current license.

• Phase 2A construction underway, adding 6,000 tonnes of production volume, with strong progress on pools and infrastructure.

• First production cycle demonstrated high growth, 97.5% survival rate, 1.05 feed conversion ratio, 91.1% superior share, and low energy consumption, validating the facility's sustainable concept.

• Secured NOK 1.4 billion in funding through loans, sale and leaseback, and private placement; NOK 400 million equity issue completed at NOK 36.80 per share to cover CapEx overruns.

Financial highlights

• Q1 2025 revenue was NOK 57,000, down from NOK 190,000 in Q1 2024; net loss for Q1 2025 was NOK 18 million, compared to NOK 15.7 million in Q1 2024.

• Cash and cash equivalents at Q1 2025 stood at NOK 178.9 million, up from NOK 59.2 million at year-end 2024.

• Net cash outflow from operating activities was NOK -18.5 million in Q1 2025.

• Total assets at Q1 2025 were NOK 3,129.9 million, with total equity at NOK 1,807.5 million and borrowings at NOK 830.8 million.

Outlook and guidance

• Smolt release and start of operations planned for September 2025, with continuous batch introductions and production ramp-up as new pools become ready.

• Full Kvalnes site expected to deliver 48,100 tonnes of production once fully scaled, with blended CapEx now estimated at NOK 115/kg.

• Further financing for working capital and liquidity is being considered, including a potential bond issue.