Bakkafrost (BAKKA) CMD 2025 summary

Strategic direction and growth plans

• Targets 10.8% CAGR in harvest volumes from 97,000 tonnes in 2025 to 162,000 tonnes by 2030, with major expansions in the Faroe Islands (112,000 tonnes) and Scotland (50,000 tonnes).

• Growth strategy centers on large-smolt hybrid farming, optimizing conventional and land-based methods, and preparing for future offshore farming.

• Expansion of freshwater and hatchery capacity, including Skarlavik in Faroe Islands and Applecross in Scotland, to drive growth.

• Market strategy emphasizes premium positioning, diversification across geographies and channels, and brand development through "Heimland" and "Native Hebridean."

• Actively monitoring for acquisition opportunities and leveraging new technologies, exposed sites, and potential offshore or land-based expansions for growth beyond 2030.

Financial guidance and capital allocation

• Five-year capex plan totals DKK 5 billion through 2030, DKK 1.3 billion less than the previous plan, focusing on higher returns, efficiency, and completion of major projects.

• Major investments include two new FSV vessels (DKK 1.6 billion), energy transition (DKK 245 million), and new processing/harvest facilities.

• Capex intensity to decrease to 9–10% of sales in 2026–2030, down from 18% since 2015, supporting the 162,000-tonne harvest target.

• Maintains a strong balance sheet with low leverage, a EUR 700 million sustainability-linked facility, and a 65% equity ratio.

• Dividend policy unchanged: targets 30–50% payout, with a historical average near 50%, balancing investment in growth and shareholder returns.

Operational and technological developments

• Fully integrated and highly digitalized value chain from feed to sales, with state-of-the-art facilities in the Faroe Islands, Scotland, Denmark, France, and the U.S.

• Feed production emphasizes high marine ingredient inclusion for better fish welfare, lower CO2 footprint, and product differentiation.

• Advanced digitalization and AI-driven systems optimize feeding, reduce waste, and enhance biological performance, with over 80 million data entries collected daily.

• R&D and in-house technology development provide competitive advantages and operational flexibility.

• Large-smolt strategy and dual freshwater treatment vessels have reduced farming cycles, biological risk, and mortality, increasing average harvest weights.