SalMar (SALM) Q2 2024 earnings summary

Executive summary

• Named one of the world's most sustainable companies in 2024, reflecting industry leadership and sustainability commitment.

• Q2 2024 operational EBIT was NOK 1,393 million, down from NOK 1,745 million year-over-year, with 44,800 tonnes harvested and EBIT per kg of NOK 31.1.

• Biological challenges and harsh weather impacted price realization, especially in Northern Norway, while Scottish Sea Farms delivered strong results.

• Dividend of NOK 35/share for 2023 paid in June 2024, totaling NOK 4,645 million, supporting a robust financial position.

• Strategic investments and R&D initiatives, including the Salmon Living Lab, support long-term growth in sustainable aquaculture.

Financial highlights

• Group operational EBIT for Q2 2024 was NOK 1,393 million (NOK 31.1/kg), down 8% QoQ and 20% YoY; EBITDA was NOK 1,803 million.

• Operating revenues were NOK 5,838 million, down 11% QoQ and 2% YoY.

• Profit before tax was NOK 1,480 million; profit after tax was NOK 900 million for Q2 2024.

• Net interest-bearing debt including lease liabilities was NOK 18,646 million at quarter-end; equity ratio at 38%.

• Dividend payout during the period was NOK 4.6 billion (NOK 35/share).

Outlook and guidance

• 2024 volume guidance unchanged for Norway (237,000t), Central Norway (146,000t), Northern Norway (91,000t), SalMar Aker Ocean (7,000t), Scotland (37,000t); Iceland revised down to 13,000t.

• Global supply growth for Atlantic salmon in 2024 expected to be limited, with a 1.2% increase from 2023.

• Contract share expected to be around 35% for Q3 and full year 2024.

• Long-term volume potential estimated at 362,000 tonnes for the group, including Scottish Sea Farms share.