Lerøy Seafood Group ASA: Strong biological performance and continued growth in VAP S&D.

15 May 2025 06:30 CEST

Lerøy Seafood Group ASA reports a consolidated operational EBIT of MNOK 1 049
for the first quarter of 2025, up from MNOK 842 in the same period last year.


OPERATIONAL IMPROVEMENTS NOW VISIBLE IN FARMING
The Farming segment delivered an operational EBIT of MNOK 789 in the quarter.
"This is a strong performance in a quarter marked by significantly lower spot
prices for salmon and trout compared to the same period last year. Improvements
in genetics, roe and smolt quality, use of shielding technology, and general
process enhancements are key contributors. We are pleased with the development
in Farming and see that the measures we have implemented are having a positive
effect on fish welfare and thereby also our financial results," says CEO Henning
Beltestad.


GROWING DEMAND FURTHER STRENGTHENS VAP S&D PERFORMANCE
The VAP S&D segment (value-added processing, sales and distribution) reported an
operational EBIT of MNOK 212 in Q1 2025 and MNOK 924 on a rolling 12-month basis
- a new record.

"VAP S&D continues its positive trajectory. Large volumes contribute to higher
utilization of our integrated value chain, and lower raw material prices support
market growth. It is encouraging to see that as a result of structured
improvement efforts, several of our entities are now performing at higher levels
than before," Beltestad highlights.



HIGH PRICES DRIVEN BY LOW QUOTAS IN WILD CATCH
The Wild Catch segment reported an operational EBIT of MNOK 148 in the first
quarter. "The first quarter is high season, and the very low quotas present a
significant challenge. Price trends in 2025 have been strong, but until quotas
recover to higher levels, it is challenging to fully utilize our industrial
capacities," the CEO notes.



THE INDUSTRY NEEDS STABLE FRAMEWORK CONDITIONS
The Norwegian government recently published the 'Aquaculture White Paper,'
proposing to replace the current license regime based on maximum allowed biomass
with a new system based on lice quotas. The proposed changes are far-reaching,
and it is very difficult to assess the full consequences.

"At Lerøy, we support the view of the Norwegian Seafood Federation that further
analysis is needed before Parliament can make major principle-based decisions.

For salmon harvested in the quarter, treatment frequency was reduced by 75% for
salmon from submerged pens compared to traditional pens. Even today, incentives
to solve lice challenges are strong and drive innovation," continues Beltestad.



FURTHER DEVELOPING NEW MARKETS FOR NORWEGIAN SALMON AND TROUT
"In our fully integrated value chain, we have the winning formula. With high
volumes at lower prices, we are now developing the global market for Norwegian
salmon and trout, particularly in emerging markets like China. This is positive
for the entire industry and for value creation in Norway.

After several years of regulatory turmoil, we urge authorities to ensure
predictable, stable, and competitive framework conditions. This is critical for
us to continue delivering healthy, sustainable, and tasty seafood to the global
market - to the benefit of the industry and the future of coastal Norway,"
concludes Beltestad.


This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

646401_LSG Q1 25 Report.pdf
646401_LSG Q1 25 Presentation.pdf