Lerøy Seafood Group (LSG) Q1 2025 earnings summary

Executive summary

• Revenue increased 12% year-over-year to NOK 7,951 million in Q1 2025, driven by higher harvest volumes in Farming and increased sales in VAP/Sales & Distribution, despite lower salmon and trout prices.

• Operational EBIT rose 24% to NOK 1,049 million, led by a 45% increase in Farming harvest volume and improved cost efficiency.

• VAP/Sales & Distribution segment delivered record 12-month rolling earnings, with EBIT of NOK 212 million in Q1 2025.

• Wild catch segment faced significant quota reductions, but higher prices partly offset lower volumes.

• Dividend of NOK 2.50 per share proposed for 2024.

Financial highlights

• Operational EBITDA was NOK 1,497 million, up 21% year-over-year.

• EPS before fair value adjustments was NOK 1.56, up from NOK 0.81 in Q1 2024.

• Net interest-bearing debt at NOK 7,038 million at 31 March 2025, down NOK 668–700 million from year start.

• Equity ratio stands at 52%, with book equity at NOK 20,601 million.

• Operational EBIT margin improved to 13.2% in Q1 2025.

Outlook and guidance

• Harvest guidance for Norway maintained at 200,000 GWT for 2025; cost reductions in Farming expected to continue.

• VAP/Sales & Distribution segment expects continued positive profitability trend in 2025.

• Wild catch faces challenging quotas, but price development remains positive; quotas may increase in the future.

• Capex for 2025 expected at NOK 2.0 billion, focused on biology, fish welfare, and technology upgrades.

• Industry faces uncertainty from new Norwegian aquaculture regulations and global trade restrictions.