Bakkafrost (BAKKA) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was DKK 1,470 million, down from DKK 1,562 million in Q4 2023, with operational EBIT at DKK 280 million versus DKK 356 million year-over-year.

• Profit after tax for Q4 2024 was DKK 477 million, up from DKK 392 million in Q4 2023; all segments except Scottish freshwater and farming posted positive EBIT.

• Harvest volumes increased to 20,478 tonnes gutted weight in Q4 2024, with Scotland's harvest tripling to 3,840 tgw and Faroe Islands at 16,638 tgw.

• The board proposes a dividend of DKK 8.44 per share for 2024, maintaining a payout target of 30-50% of EPS.

Financial highlights

• Full-year operational EBIT was DKK 1,550 million, nearly flat year-over-year.

• Adjusted EPS for the year was DKK 16.87, and DKK 4.37 for Q4; basic and diluted EPS for Q4 2024 was DKK 8.04.

• Cash flow from operations in Q4 2024 was DKK 68 million, up from DKK -112 million in Q4 2023; full-year cash flow from operations was DKK 2,355 million.

• Net interest-bearing debt at year-end was DKK 3,000 million, with undrawn credit facilities of DKK 2,386 million.

• Equity ratio improved to 63% from 61% at year-end 2023.

Outlook and guidance

• 2025 harvest volume expected at 97,000 tonnes gutted weight (77,000 FO, 20,000 SCT), up from 91,000 in 2024.

• Global salmon supply projected to grow 5% in 2025, with some downward price pressure anticipated.

• Faroe Islands to see 22% supply growth, while Scotland's harvest is reduced as de-risking continues.

• Feed sales expected to continue increasing, with feed factory expansion to double capacity in a year.

• Capex plan for 2024-2028 totals DKK 6.3bn, with some project reprioritization reducing 2024-2025 spend by DKK 800 million.