Grieg Seafood (GSF) Q1 2025 earnings summary

Executive summary

• Operational EBIT for Q1 was NOK 221 million, or NOK 289 million excluding NOK 68 million in one-off restructuring and demobilization costs, with Rogaland as the main margin contributor and improved group farming costs by NOK 3.4 per kilo versus Q4.

• The company shifted focus from growth to profitability, reallocating resources to Norwegian assets, and prioritizing financial flexibility, equity strengthening, debt reduction, and cash flow protection.

• Phase 1 of the financial transformation completed, including NOK 2 billion hybrid bond placement, significant CAPEX reductions in Canada, and sale-leaseback of the Finnmark post-smolt facility launched to improve liquidity.

• Harvest targets remain on track, with full-year 2025 guidance of 84,000 tonnes and Q2 2025 expected at 21,000 tonnes.

• Leadership changes included Per Grieg stepping down as Chair, replaced by Paal Espen Johnsen, and Nina Willumsen Grieg appointed Interim CEO.

Financial highlights

• Q1 2025 sales revenues were NOK 2,184 million, down from NOK 2,290 million in Q1 2024.

• Operational EBIT was NOK 221 million (NOK 10.6/kg), with adjusted EBIT at NOK 13.8/kg excluding one-off costs.

• Net loss after tax was NOK 312 million, compared to NOK 331 million loss in Q1 2024.

• Cash flow from operations was NOK 158 million; free liquidity at quarter-end was approximately NOK 2 billion.

• EBIT was NOK -470 million, mainly due to NOK -674 million fair value adjustment of biological assets.

Outlook and guidance

• Full-year 2025 harvest guidance is 84,000 tonnes, with Q2 2025 expected at 21,000 tonnes; Rogaland and Finnmark expect higher costs in Q2 due to operational factors, but full-year cost trends remain positive.

• Capex for 2025 estimated at NOK 950 million, with NOK 450 million for Finnmark post-smolt expansion; ongoing cost improvement program extended to 2027.

• Market fundamentals remain strong, but prices are expected to be low and volatile in 2025 due to higher export volumes.

• Contract share of Norwegian harvest volume is estimated at 30% for Q2 and 26% for the full year.

• Newfoundland to harvest 4,000 tonnes in Q2; British Columbia to resume harvests in Q2.