Lerøy Seafood Group (LSG) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating profit was NOK 412m, down 35% year-over-year, mainly due to weak salmon and trout prices and lower wild catch quotas.

• Revenue for Q3 2024 was NOK 7,889m, nearly flat year-over-year.

• VAPS & D segment achieved record 12-month rolling earnings and continued to strengthen.

• Wild Catch earnings declined sharply due to quota reductions and higher raw material prices.

• Scottish Sea Farms reported strong biological and earnings improvement, returning to profitability.

Financial highlights

• Q3 2024 revenue was NOK 7,889m (-1% year-over-year); operational EBIT was NOK 412m (-35%).

• EPS for Q3 2024 was NOK 0.62, up from NOK 0.17 in Q3 2023.

• Salmon and trout harvest volume decreased 5% year-over-year to 51,367 GWT.

• Whitefish catch volume fell 8% to 13,266 tonnes.

• ROCE before fair value adjustment declined to 6.4% from 8.7% year-over-year.

Outlook and guidance

• 2024 salmon and trout harvest volume expected at 190,000 GWT, slightly reduced from previous guidance.

• 2025 Norwegian operations harvest target: 195,000 GWT; total including joint ventures: 211,000 GWT.

• Biological development in 2024 is promising for 2025, with improvements expected from roe, genetics, smolt quality, and new technology.

• Wild Catch faces a challenging quota situation, with cod quotas down 32% and haddock down 8% for 2025.

• Higher volumes and lower feed costs anticipated to reduce cost per kilo in 2025.