Salmon Evolution (SALME) Q3 2024 earnings summary

Executive summary

• Achieved strong biological KPIs and operational stability, with record standing biomass and superior grade share of 98% in Q3 2024, and mortality rates within targets.

• Demonstrated profitability in the farming segment despite low volumes and seasonally low prices, with positive EBITDA.

• Indre Harøy phase 2 construction started in August, progressing on schedule and budget, targeting first smolt release in Q1 2026 and first harvest in Q4 2026.

• Strong financial position with NOK 866m in available liquidity and NOK 1,450m in earmarked construction financing.

• Harvest volumes pushed into Q4 to maximize price realization, maintaining full-year harvest guidance of ~5,000 tonnes HOG.

Financial highlights

• Q3 2024 group revenue was 51.3 million NOK, with group EBITDA at -7.3 million NOK and farming segment EBITDA at 2.2 million NOK (3.3 NOK/kg).

• Operating loss for Q3 was 25.6 million NOK, with EPS at -0.06 NOK; year-to-date loss at 20.5 million NOK.

• Positive operational cash flow of 6.6 million NOK; available liquidity at quarter-end was 866 million NOK.

• Net interest-bearing debt at quarter-end was 135 million NOK; equity ratio was 72%.

• Accumulated CAPEX for phase 2 reached 250 million NOK.

Outlook and guidance

• 2024 harvest volume guidance remains at ~5,000 tonnes HOG, with Q4 expected at ~1,800 tonnes HOG.

• 2025 production expected to increase by 40% to 7,000 tonnes HOG, with harvest guidance of 6,000–6,500 tonnes.

• Phase II on track for first smolt release in Q1 2026, targeting 18,000 tonnes HOG annual run-rate.

• Lower feed prices and increased scale expected to reduce farming costs in 2025.

• Market outlook for 2025 and beyond remains tight, supporting high salmon prices.