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.

• New technology adoption (current deflectors, semi-closed containments, submerged pens) and digitalization initiatives optimize site use, efficiency, and environmental impact.

• Actively monitoring for acquisition opportunities to support further growth.

Capital expenditure and financial guidance

• Five-year CaPex plan totals DKK 5 billion through 2030, DKK 1.3 billion less than the previous plan, focusing on returns, project completion, and reducing biological risk.

• Major investments include Skarlavik hatchery, new silos at Havsbrún, new farming sites, live fish holding tanks, and two new vessels.

• DKK 245 million earmarked for energy transition, including renewable energy projects and dual-fuel vessels.

• Investment intensity drops to DKK 6 per kilo, supporting the 162,000-ton harvest target and future growth.

• CaPex-to-sales ratio expected to fall to 9-10% in 2026–2030, aligning with industry peers and improving return on capital employed as volumes scale.

Operational and financial performance

• Salmon harvest and turnover have more than quadrupled since listing, with 2024 revenue at ~DKK 7.3bn and Op.EBIT at ~DKK 1.55bn.

• Feed production costs stabilized after raw material price shocks; production costs at Havsbrún rose only 3% over six years.

• Smolt production costs in Faroe Islands have declined due to efficiency and capacity utilization; Scotland to follow as Applecross ramps up.

• Group aims to close margin gap between Faroe Islands and Scotland as Scottish turnaround progresses.

• Strong financial position with low debt, high equity ratio, and sustainability-linked bank facilities of EUR 700m.