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 a significant decline in salmon and trout prices.

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

• Record earnings in the VAP, Sales & Distribution segment on a 12-month rolling basis.

• Wild Catch segment maintained stable revenue as higher prices offset lower quotas and catch volumes.

• Proposed dividend of NOK 2.50 per share.

Financial highlights

• Operational EBITDA rose 21% to NOK 1,497 million; operational EBIT up 24% to NOK 1,049 million.

• EPS before fair value adjustments doubled to NOK 1.56 from NOK 0.81 year-over-year.

• Salmon and trout harvest volume up 45% to 38,243 GWT; whitefish catch volume down 21% to 18,957 tonnes.

• ROCE before fair value adjustments improved to 15.2% from 14.3% year-over-year.

• Reported profit impacted by a non-cash fair value adjustment of biomass of NOK -1,754 million due to price declines.

Outlook and guidance

• Positive biological trends and cost reductions expected to continue, supporting higher harvest volumes in 2025.

• Harvest guidance for Norway maintained at 195,000 GWT for 2025; total Farming guidance at 211,000 GWT.

• VAP, Sales & Distribution segment expected to maintain positive profitability trend.

• Wild Catch segment faces challenging quotas, but higher prices and efficiency gains are expected to offset much of the impact.

• Contract share for salmon in 2025 at around 17%.