Lerøy Seafood Group (LSG) Q2 2024 earnings summary

Executive summary

• Operational EBIT for Q2 2024 was NOK 906 million, down 5% year-over-year, with strong biological development in Norwegian farming and significant improvements in Scottish Sea Farms.

• VAP sales and distribution (VAPS & D) segment showed continued positive development and higher profitability year-over-year.

• Dividend of NOK 2.5 per share paid in Q2 2024.

Financial highlights

• Q2 2024 revenue was NOK 7,649 million, nearly flat year-over-year; operational EBIT was NOK 906 million, down 5% year-over-year.

• Harvest volume increased by 24% year-over-year, driven by improved biological performance and some accelerated harvest due to ISA.

• Operational EBITDA was NOK 1,300 million, down 1% from Q2 2023.

• EPS improved to NOK 0.77 from -2.11 in Q2 2023, driven by positive developments in Scottish Sea Farms.

• Net interest-bearing debt at quarter-end was NOK 6,761 million; equity ratio at 49.2%.

Outlook and guidance

• Maintained 2024 harvest guidance: 175,000 tons in Norway, with segment targets of 47,000 tons (Aurora), 70,000 tons (Midt), and 58,000 tons (Sjøtroll); total 2024 harvest estimate including JVs is 193,500 GWT.

• Targeting 200,000 tons in Norway by 2025, a 25,000-ton increase from 2024.

• VAPS & D segment targets NOK 1.25 billion EBIT in 2025, a 55% increase from Q2 2024.

• Expect continued positive profitability trend in VAPS & D into 2025.

• Challenging outlook for Wild Catch segment due to further quota reductions in 2024 and 2025.