Bakkafrost (BAKKA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined to DKK 1,737 million, with operational EBIT at DKK 173 million, both down year-over-year due to lower salmon prices and the impact of an ISA outbreak in the Faroe Islands.

• Profit after tax was negative DKK 116 million, impacted by lower prices and negative fair value adjustments.

• Harvest volumes increased 29% in the Faroe Islands and 32% in Scotland, with total harvest reaching 27,029 tonnes gutted weight.

• Cash flow from operations rose sharply to DKK 575 million from DKK 185 million in Q3 2023.

• Strong biological performance in the Faroe Islands and improved results in Scotland due to reduced mortality and better sea lice control.

Financial highlights

• Operating revenue for Q3 2024 was DKK 1,737 million, down from DKK 1,859 million in Q3 2023.

• Operational EBIT for Q3 2024 was DKK 173 million, down from DKK 269 million; profit after tax was DKK -116 million.

• Cash flow from operations in Q3 2024 was DKK 575 million, up from DKK 185 million.

• Net interest-bearing debt decreased to DKK 2,710 million; equity ratio stable at 62%.

• Fair value adjustment of biological assets was DKK -266 million in Q3 2024.

Outlook and guidance

• 2024 harvest guidance: 63,500 tonnes in Faroe Islands and 26,100 tonnes in Scotland, totaling 89,600 tonnes.

• 2025 harvest expected at 100,000 tonnes, with 77,000 tonnes in Faroe Islands and 23,000 tonnes in Scotland.

• CAPEX plan for 2024-2028 is DKK 6.3bn, with Scottish investments reprioritized, reducing 2024-2025 spend by DKK 800m.

• Focus remains on de-risking in Scotland and transitioning to larger, healthier smolt.

• Feed prices expected to decline, positively impacting costs mainly in late 2025 and into 2026.