SalMar (SALM) Q2 2024 earnings summary

Executive summary

• Operational EBIT for Q2 2024 was NOK 1,393 million, down from NOK 1,745 million year-over-year, with a harvest volume of 44,800–48,800 tonnes and EBIT per kg of NOK 31.1, mainly due to lower achieved prices and biological challenges in Norway and Iceland.

• Scottish Sea Farms delivered significantly improved results year-over-year, while SalMar Aker Ocean transferred new smolt to Ocean Farm 1.

• Dividend of NOK 35 per share for 2023 was paid in June 2024; financial position remains robust with sustainable financing in place.

• SalMar was named one of the world's most sustainable companies by TIME magazine in June 2024.

Financial highlights

• Group operational EBIT for Q2 2024 was NOK 1,393 million, down 8% sequentially and 20% year-over-year; operating revenues were NOK 5,838 million, down 11% sequentially and 2% year-over-year.

• Adjusted EPS for Q2 2024 was NOK 6.2, down from NOK 8.9 year-over-year; profit before tax was NOK 1,480 million.

• Harvest volume for Q2 2024 was 44,800 tonnes, down 15% sequentially but up 5% year-over-year for H1.

• Central Norway: 27,100 tonnes harvested, EBIT/kg of 41.0; Northern Norway: 17,000 tonnes, EBIT/kg of 29.9.

• Scottish Sea Farms: 12,200 tonnes harvested, EBIT/kg of 19.1; Icelandic Salmon: 700 tonnes, EBIT/kg of -61.6, impacted by one-off cost of EUR 3.9 million.

Outlook and guidance

• Volume guidance for 2024: Norway 237,000 tonnes, Central Norway 146,000 tonnes, Northern Norway 91,000 tonnes, Icelandic Salmon reduced to 13,000 tonnes, Scottish Sea Farms 37,000 tonnes, SalMar Aker Ocean 7,000 tonnes.

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

• Contract share for Q3 and FY 2024 expected around 35%.

• Slightly higher costs expected in Northern Norway and SalMar Aker Ocean in Q3 2024.

• Confident in reaching medium-term CMD volume targets, supported by increased smolt transfer.