Bakkafrost (BAKKA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached DKK 2,067 million, up 24% year-over-year, with operational EBIT at DKK 388 million, a 10% increase from last year.

• Harvest volumes increased to 21,592 tonnes gutted weight, up 35% year-over-year, with growth in both the Faroe Islands and Scotland.

• Cash flow from operations was strong at DKK 1,036 million, significantly higher than last year.

• Dividend of DKK 8.70 per share (DKK 515 million) was paid in Q2 2024.

• Net loss after tax was DKK 117 million, slightly improved from DKK 123 million loss last year.

Financial highlights

• Operational EBIT for Q2 2024 was DKK 388 million, up from DKK 353 million in Q2 2023.

• Adjusted EPS for Q2 2024 was DKK 1.89, with year-to-date at 11.03 DKK.

• Equity ratio remained strong at 62% at the end of Q2 2024.

• Cash and cash equivalents increased to DKK 608 million.

• Fair value adjustments were negative DKK 393 million; revenue tax increased to DKK 84 million.

Outlook and guidance

• 2024 harvest volume expected at 88,500 tonnes: 63,500 in Faroe Islands, 25,000 in Scotland.

• CapEx for 2024 and 2025 reduced by DKK 800 million due to reprioritization.

• Moderate supply growth of 4–6% expected in H2 2024; tight market conditions anticipated in H1 2025.

• Strategy focuses on de-risking, cost optimization, and ramping up large smolt production.

• Smolt release in 2024: 17.0 million in Faroe Islands, 7.7 million in Scotland, with focus on increasing average smolt size.