Andfjord Salmon (ANDF) Q1 2025 earnings summary

Executive summary

• Announced a 20% increase in production capacity at Kvalnes through optimized water flow, fish logistics, and infrastructure improvements, raising expected output to 23,700 tonnes (HOG + post-smolt) under the current license.

• Construction of phase 2A is underway as a direct continuation of phase 1, with strong progress on pools and technical infrastructure; smolt release is planned for Q3/September 2025.

• Achieved major milestones including outlet waterway breakthrough, tunnel filling with seawater, and successful infrastructure testing.

• Raised NOK 1.4 billion in Q1 through loans, sale and leaseback, and private placement, plus an additional NOK 400 million equity issue at NOK 36.80 per share to cover revised CapEx.

• Industry-leading operational metrics achieved: 97.5% survival rate, 1.05 feed conversion ratio, 91.1% superior share, and 1 kWh energy use per kilo.

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, with total assets of NOK 3,129.9 million and total equity of NOK 1,807.5 million.

• Borrowings at Q1 2025 were NOK 830.8 million; equity ratio at end of Q1 was 58%.

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

• CapEx per kilo revised upward from NOK 105 to NOK 115 due to design and construction changes.

Outlook and guidance

• Smolt release and start of operations planned for Q3/September 2025, with continuous batch introductions and gradual ramp-up as new pools become ready.

• Full Kvalnes site expected to deliver 48,100 tonnes of production once fully scaled.

• Further financing for production ramp-up under consideration, with a potential bond issue planned.