Lerøy Seafood Group ASA: Operational Improvements Fuel Strong Quarter, Progress Towards 2025 Targets

Lerøy Seafood Group ASA, the global seafood giant headquartered in Bergen, Norway, has reported a strong quarter, reflecting the positive impact of operational improvements and progress towards its 2025 targets. The company's consolidated operational EBIT for the fourth quarter of 2024 reached MNOK 799, with the Farming segment delivering an operational EBIT of MNOK 594. This impressive performance is a testament to the hard work and dedication of Lerøy's employees in implementing a comprehensive plan for operational improvements launched at the Capital Markets Day in 2022.

One of the key factors driving Lerøy's progress is the adoption of shielding technology, which has contributed to improved fish welfare and reduced lice treatment frequency by 85% in submerged cages compared to traditional farming. This innovative technology has been groundbreaking and important for fish welfare, translating to better economics for the company. In 2025, Lerøy plans to invest a further MNOK 500 in shielding technology, with approximately 40% of the salmon harvested in 2025 expected to come from shielding technology.

The Value-Added Processing, Sales & Distribution (VAP S&D) segment has also shown significant progress, achieving the highest earnings in its history. The segment reported an operational EBIT of MNOK 275 for the fourth quarter of 2024 and MNOK 888 for the year, driven by operational improvements and increased utilization of the integrated value chain. This positive development is expected to continue, with earnings projected to increase in 2025 towards the challenging target of an operational EBIT of NOK 1.25 billion.

Lerøy's commitment to sustainability and circular economy initiatives has also played a crucial role in its progress. The company aims to reduce its greenhouse gas emissions by 46% by 2030, with a focus on reducing the carbon footprint of fish feed. Through a partnership with its feed supplier, EWOS, Lerøy has developed a solution to use by-products from European chicken production as an ingredient in fish feed, which is expected to reduce the feed's carbon footprint by up to 16%. This initiative is a practical example of circular economy in action.

Lerøy Seafood Group ASA's long-term strategic goals align with these factors, as the company aims to create the world's most efficient and sustainable seafood value chain. The target for annual return on capital employed (ROCE) is 18%, and the group has set ambitious sustainability goals, including a 46% reduction in greenhouse gas emissions by 2030. Lerøy's efficient and sustainable fully integrated value chain continues to gain momentum, representing the winning recipe in the future seafood market.

In conclusion, Lerøy Seafood Group ASA's strong quarterly results reflect the positive impact of operational improvements, with the Farming and VAP S&D segments showing significant progress. The company's investment in shielding technology has contributed to improved fish welfare and operational efficiency, with expected benefits in the coming years. Lerøy's commitment to sustainability and circular economy initiatives, along with its long-term strategic goals, positions the company well for continued success in the future seafood market.