Grieg Seafood (GSF) Q4 2024 earnings summary

Executive summary

• Q4 2024 operational EBIT was NOK -74 million (NOK -3.1 per kg), impacted by a NOK 75 million cost increase from a jellyfish attack in Finnmark; other Norwegian sites performed well.

• Significant impairment losses of NOK 1.7 billion were recognized on Canadian assets due to political and operational uncertainties.

• Transformation program launched to focus on Norwegian asset development, cost efficiency, and financial flexibility, including a contemplated NOK 1.5–2.0 billion hybrid bond and sale-leaseback of Finnmark smolt facility.

• Full-year 2025 harvest volume targeted at 84,000 tonnes, with 18,800 tonnes expected in Q1 2025.

Financial highlights

• Q4 2024 sales revenues were NOK 2,249 million, up from NOK 1,938 million in Q4 2023.

• Operational EBIT for Q4 2024 was NOK -74 million, compared to NOK -67 million in Q4 2023.

• Net profit for Q4 2024 was NOK -1,589 million, reflecting the Canadian asset impairment, versus NOK 547 million in Q4 2023.

• Net cash flow from operations was NOK -213 million; net interest-bearing debt (NIBD) increased, with a NOK 750 million bridge loan established.

• Equity ratio fell to 30% from 49% due to impairments.

Outlook and guidance

• 2025 harvest volume guidance is 84,000 tonnes, with Q1 2025 expected at 18,800 tonnes.

• CapEx for 2025 planned at ~NOK 950 million, with maintenance, Finnmark post-smolt expansion, and Gardermoen VAP plant as key projects.

• Ongoing cost reduction initiatives expected to yield at least NOK 150 million in annual savings, with further improvements targeted through 2027.

• Robust salmon market expected due to healthy demand and limited supply growth; contract share of Norwegian harvest volume estimated at 23% for Q1 2025.