Lerøy Seafood Group ASA: Continued progress in biological performance

PROGRESS IN BIOLOGICAL PERFORMANCE CONTINUES

Lerøy Seafood Group ASA today reports a consolidated operational EBIT of NOK 906 million for the second quarter of 2024.

CEO Henning Beltestad comments: "The positive trend in biological performance has continued into the second quarter, and we are performing well in a quarter characterized by declining salmon prices. The number of lice treatments has been significantly reduced, and growth and survival rates have substantially increased compared to the average over the past five years.

Almost five years ago, we launched an extensive project to explore new technologies aimed at addressing one of the industry's biggest challenges: the presence of sea lice and the related treatments that negatively affect fish welfare. In August 2024, we harvested our first salmon from submerged cages. This innovative technology is showing very promising results, and we believe it will be an important growth driver for Lerøy going forward," says Beltestad.

Scottish Seafarms also delivered significant improvements in biology, resulting in a considerable increase in profit compared to last year.

VAP S&D ACHIEVES RECORD HIGH EARNINGS

The segment for value-added processing, sales & distribution (VAP S&D) reported an operational EBIT of NOK 217 million in Q2 2024. "The positive development in the segment continues. This is driven by operational improvements and increased utilization of our integrated value chain," says Beltestad.

"We are a significant food producer, well-positioned, and we feel a great responsibility to contribute to increased seafood consumption in line with the updated dietary guidelines from the Norwegian Directorate of Health, which confirm that one should eat more seafood," he continues.

CHALLENGES IN WILD CATCH DUE TO REDUCED QUOTAS

The Wild Catch segment reported an operational EBIT of NOK -4 million, which is significantly lower than the same quarter last year. "The outlook for wild catch is very challenging due to significant quota reductions in recent years. The quota advice for 2025 indicates further cuts. This development is undoubtedly challenging for this part of our business," points out Beltestad.

ACHIEVING STRATEGIC GOALS THROUGH OPERATIONAL EXCELLENCE

"Lower salmon prices affected the market in the second quarter, but we are optimistic about the long-term outlook. We are on track to achieve our ambitious 2025 goals for both Farming and VAP S&D. We are highly focused on improving roe and smolt quality, implementing new farming technology, and optimizing processes. We are also seeing increasing demand for an integrated value chain with a strong sustainability profile, and we see significant potential to increase earnings in our European downstream operations," concludes Beltestad.

For inquiries, please contact CEO Henning Beltestad or CFO Sjur S. Malm.

ABOUT LERØY SEAFOOD GROUP

Lerøy Seafood Group is a global seafood group headquartered in Bergen. The company's approximately 6,000 employees annually handle between 350,000 and 400,000 tons of seafood through the company's value chain, equivalent to about 5 million meals every day. The group has a vertically integrated value chain for redfish and whitefish, as well as significant third-party product activity.

The Group's values, "open, honest, responsible, and creative," are the basis for the Group's total activities, and efforts are made towards the goal of creating the world's most efficient and sustainable seafood value chain. The target for annual return on capital employed (ROCE) is 18%. The group has set ambitious sustainability goals, including a 46% reduction in greenhouse gas emissions by 2030.

To ensure food safety for the consumer, we actively work in all stages of the value chain. As a fully integrated seafood supplier, we have the opportunity to control and quality-assure our products throughout the entire value chain. This way, we can meet the seafood market's increasingly stringent requirements for traceability, food safety, product quality, cost-effectiveness, sustainability, and continuous delivery. 

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

Attachments

• LSG Q2 24 presentation
• LSG Q2 24 report