Salmon Evolution (SALME) Q2 2024 earnings summary

Executive summary

• Achieved record high Q2-24 harvest of 1,581 tonnes HOG, with a superior grade share of 96% and strong price realization of 106 NOK/kg, driving strong profitability and positive operational results.

• First half 2024 saw 2,481 tonnes HOG harvested, with EBITDA of 69.5 NOKm and first positive net cash flow from operations (37.5 NOKm in Q2-24).

• Phase two construction has commenced, fully financed for 18,000 tonnes gutted production, with first smolt stocking targeted for Q1 2026 and first harvest in Q4 2026.

• Completed private placement raising 365 NOKm and secured 675 NOKm in new bank facilities to fund Indre Harøy phase 2 expansion.

• Available liquidity at quarter-end was 983.4 NOKm, including undrawn credit facilities, positioning for further growth.

Financial highlights

• Q2-24 revenues reached 170.5 NOKm, up from 100.3 NOKm in Q1-24, driven by record harvest and high prices.

• Group EBITDA for Q2-24 was 45.4 NOKm; farming segment EBITDA was 58.6 NOKm (37.1 NOK/kg).

• Net profit for Q2-24 was 6.3 NOKm; operational cash flow was 37.5 NOKm.

• Cash and cash equivalents at 30 June 2024 were 683.4 NOKm; net interest-bearing debt at 17.4 NOKm; equity ratio at 74%.

• Group EBITDA margin for Q2-24 was 26.6%.

Outlook and guidance

• 2024 harvest expected at 5,000 tonnes gutted, below the 7,900-tonne phase one target due to one-off events, but adjusted figures approach 7,000 tonnes.

• Q3-24 harvest guidance revised to 1,200–1,300 tonnes, with H2-24 harvest in the range of 2,400–2,600 tonnes.

• Indre Harøy phase 2 to add 10,100 tonnes HOG annual harvest, increasing total planned output to 18,000 tonnes HOG by 2026.

• Fully stocked facility by August to support strong biomass growth in H2-24.

• Market outlook remains strong with tight supply and high salmon prices expected to continue.