SalMar: Navigating Biological Challenges for Solid Financial Results

SalMar, one of the world's largest salmon producers, has reported satisfactory financial results for the third quarter of 2024, despite facing biological challenges that impacted operational efficiency. The company's Operational EBIT for Norway was NOK 1,082 million, with a harvest volume of 56,400 tonnes and operational EBIT per kg of NOK 19.2. Group-wide, Operational EBIT was NOK 1,041 million, with a harvest volume of 60,300 tonnes and operational EBIT per kg of NOK 17.3. The farming segments in Norway were affected by biological challenges during the quarter, leading to reduced volume expectations for 2024.

SalMar's Operational EBIT per kg in Norway decreased from NOK 33.2 in Q2 2024 to NOK 19.2 in Q3 2024, indicating a significant impact of biological challenges on operational costs. The company has taken measures to mitigate these costs, including optimizing the value chain and identifying potential savings of NOK 1.2 billion by 2029. Additionally, SalMar has strengthened its presence in Norway by acquiring a controlling interest in AS Knutshaugfisk, which has 3,464 tonnes MAB in licenses and four farming sites in production area six in Central Norway.



Based on the provided data, SalMar's Operational EBIT per kg for Norway in Q3 2024 was NOK 19.2, down from NOK 33.2 in Q2 2024. This decline can be attributed to biological challenges, which also led to a reduction in harvest volume expectations for 2024. However, SalMar remains optimistic about its future, expecting a 14% increase in harvest volume for 2025 compared to 2024. The company's strategic moves, such as the acquisition of AS Knutshaugfisk and the purchase of volume on the traffic light, have increased its volume potential to 370,000 tonnes. Despite the challenges, SalMar is well-positioned to realize its potential in the value chain, focusing on improving performance and increasing efficiency.

In conclusion, SalMar has demonstrated resilience in the face of biological challenges, maintaining solid financial performance and taking strategic steps to enhance its operational efficiency and sustainability. By optimizing its value chain, strengthening its presence in Norway, and investing in innovative projects like the Salmon Living Lab, SalMar is well-equipped to navigate the challenges and capitalize on emerging opportunities in the salmon farming industry.