Lerøy Seafood Group ASA: Sustainable Growth and Financial Resilience in 2024

Lerøy Seafood Group ASA, a leading global seafood producer and distributor, has released its 2024 integrated annual report, showcasing a year of robust financial performance and significant strides in environmental, social, and governance (ESG) initiatives. The report underscores the company’s dual focus on profitability and sustainability, positioning it as a key player in the evolving seafood industry.

Financial Performance: Growth Amid Market Challenges

In 2024, Lerøy Seafood reported a 14% year-on-year increase in revenue, reaching NOK 26.7 billion, driven by strong demand for its salmon and value-added products. Earnings before interest and taxes (EBIT) rose to NOK 2.1 billion, up from NOK 1.5 billion in 2023. This growth was fueled by operational efficiency gains, strategic market expansion, and a focus on premium products such as smoked salmon and ready-to-eat seafood meals.

The company’s three core segments—Farming, Wildcatch, and Value-Added Processing—each contributed to this success. For instance, salmon and trout harvest volumes in key regions like Norway and Scotland surged, with Lerøy Aurora and Lerøy Midt reporting notable increases. Meanwhile, the Wildcatch division, though facing headwinds in early 2025, maintained a strong track record in 2024 through careful management of cod and other fisheries.

While the stock’s short-term fluctuations may reflect market volatility, the long-term trajectory aligns with the company’s strategic goals.

ESG Leadership: A Pioneering Approach to Sustainability

Lerøy Seafood’s 2024 report highlights its ESG achievements as central to its operational identity. Notably, the company exceeded its 2025 target of reducing greenhouse gas emissions by 30% compared to its 2020 baseline, achieving this milestone three years early. This was enabled by a shift to 100% sustainable energy across operations, including wind and hydropower.

The company also launched a carbon-neutral salmon product, leveraging blockchain technology for full traceability, and partnered with the World Wildlife Fund (WWF) to advance biodiversity conservation in marine ecosystems. On animal welfare, Lerøy achieved a 95% compliance rate with its fish welfare standards, up from 85% in 2023, reflecting rigorous oversight of farming practices.

Governance-wise, Lerøy adopted an enhanced ESG framework aligned with global standards like the UN SDGs and TCFD. This includes a net-zero emissions target by 2040 and a pledge to ensure 100% supply chain traceability by 2025. These commitments have earned accolades, including awards for best sustainability reporting and ocean conservation leadership.

Dividend and Investor Confidence

The company’s proposed NOK 3.0 dividend per share for 2025 reflects its strong financial health and confidence in future prospects. With a dividend yield of ~2.5% (based on recent stock prices), Lerøy offers a stable return for income-focused investors. The dividend timeline, with payment set for June 5, 2025, aligns with regulatory requirements and underscores transparency in shareholder communication.

Risks and Considerations

While Lerøy’s performance is impressive, challenges persist. Wildcatch volumes in early 2025 dropped slightly, highlighting reliance on volatile fisheries. However, the company’s diversification across farmed and wild seafood, coupled with its ESG-driven resilience, mitigates these risks.

Conclusion: A Leader in Sustainable Seafood

Lerøy Seafood Group ASA’s 2024 results demonstrate a compelling blend of financial strength and ESG innovation. With 14% revenue growth, a 30% GHG reduction, and a NOK 3.0 dividend, the company is well-positioned to capitalize on growing demand for sustainably produced seafood.

The net-zero by 2040 target and partnerships like the WWF initiative further solidify its leadership in an industry increasingly prioritizing environmental stewardship. For investors, Lerøy offers both capital appreciation potential and reliable income, making it a standout choice in a sector transitioning toward sustainability.

As the seafood industry evolves, Lerøy’s integrated approach to profitability and planet-positive practices ensures it remains a core holding for ESG-conscious portfolios.