NRS issues profits warning

Norway Royal Salmon has issued a profits warning ahead of its 2022 first quarter results, due later this month.

The company said the problem relates biological challenges, with higher than usual winter wounds at its Norwegian farms, leading to early mass harvesting.

In a stock market statement it said: “NRS [Norway Royal Salmon] has during the first quarter experienced more biological challenges with winter wounds in the Norwegian operations than normal. NRS has, for welfare reasons, therefore chosen to accelerate the harvest of the affected fish.

“This has resulted in a low superior share and lower price achievement than the prevailing market prices might suggest.”

NRS is also reducing the projected harvest volume in Norway for 2022 from 35,000 metric tons to 32,000 metric tons gutted weight.

NRS is predicting a first quarter operating profit or EBIT of NOK 115m (£9.5m) due to a low price achievement during the period along with certain non-recurring costs. The corresponding figure for Q1 2021, when prices were far lower, was NOK 60m (£5m)

This means NRS would be almost alone among the major Norwegian salmon farmers not to have fully benefitted from the price surge this winter. Most other major salmon companies are reporting record or near record operating profits.

NRS is part of the NTS group which, subject to Norwegian Competition Authority approval, is due to come under the control of SalMar.

There have also been internal boardroom related wrangles following SalMar’s successful bid for NTS, but these have nothing to do with its current biological challenges.

NRS said more information will be given in connection with the presentation of the full Q1 2022 report on 25 May.