SalMar (SALM) Q4 2024 earnings summary

Executive summary

• 2024 was marked by environmental and biological challenges, impacting cost, growth, volume, and quality, but biological performance improved by year-end, especially in Q4.

• Robust financial position maintained, with a proposed dividend of NOK 22.00 per share for 2024 and strong access to sustainable financing.

• Strategic investments in fish welfare, value chain efficiency, and technology are prioritized for 2025.

• Strategic acquisitions in Norway, including AS Knutshaugfisk and consolidation with Wilsgård AS, are set to boost future capacity.

• Icelandic Salmon faced weak results due to biological issues, while Scottish Sea Farms saw significant operational improvement.

Financial highlights

• Q4 2024 operational EBIT in Norway: NOK 1,485 million; total group operational EBIT: NOK 1,489 million.

• Full-year operational EBIT: NOK 5,429 million; EBITDA: NOK 7,120 million (down 26% YoY); operating revenues: NOK 26,426 million.

• Harvested 73,800 tons in Q4 (Norway, Iceland, SalMar Aker Ocean); margin of NOK 20.2 per kilo.

• Adjusted EPS for 2024: NOK 22.5 per share, down from NOK 33.5 in 2023.

• Net profit for 2024: NOK 3,105 million; result before tax: NOK 4,201 million.

Outlook and guidance

• Volume guidance for 2025: Norway 154,000 tons (Central), 100,000 tons (Northern); Iceland 15,000 tons; SalMar Aker Ocean 9,000 tons; Scottish Sea Farms 32,000 tons.

• Market demand for salmon remains strong, with improved contract prices for 2025 and contract share for Q1 2025 at 45%, full-year 2025 at 25%.

• Investments in preventive technology and fish welfare to increase in 2025, with NOK 1.9 billion planned group investments, mostly in Norway.

• Global salmon supply is expected to grow by 5.7% in 2025, with higher volumes anticipated in all major regions.

• Q1 2025 expected to see seasonally lower volumes and similar or slightly lower cost levels across regions.