Bakkafrost (BAKKA) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was DKK 1,899 million, down 14% year-over-year, with operational EBIT at DKK 505 million, and all segments reporting positive EBIT.

• Harvest volumes increased 32% in the Faroe Islands to 19,000 tonnes, while Scotland's harvest decreased 13% to 6,300 tonnes.

• Net result was DKK -6 million, impacted by fair value adjustments of -DKK 376 million due to lower salmon prices.

• Dividend of DKK 8.44 per share (total DKK 501 million) to be paid in May 2025.

• Cash flow from operations was DKK 590 million.

Financial highlights

• Operational EBIT margin declined across segments, notably in FOF (13% vs 24%) and Farming FO (24% vs 40%).

• Adjusted EPS for Q1 2025 was DKK 2.95, down from DKK 4.80 in Q1 2024; basic and diluted EPS were DKK -0.10.

• Net interest-bearing debt decreased to DKK 2,788 million, with undrawn credit facilities of DKK 2,598 million.

• Equity ratio stood at 62%.

• Cash and cash equivalents at quarter-end were DKK 250 million.

Outlook and guidance

• 2025 global supply growth for Atlantic salmon expected at 6-7%, with Bakkafrost planning to harvest 97,000 tonnes (77,000 FO, 20,000 SCT).

• Smolt transfer guidance: 18.5 million in Faroe Islands (avg. 430g), 10 million in Scotland (avg. >200g).

• Contract share guidance increased to 15-20% of expected total harvest volumes.

• Feed raw material prices expected to remain low, positively impacting farming costs.

• Capex plan for 2024-2028 is DKK 6.3bn, with some project reprioritization reducing 2024-25 spend by DKK 800m.