Faroes shines for Bakkafrost as Scotland steadily improves

Bakkafrost’s Scottish business began to turn the corner during the final three months of 2023, the company reported today.

After a difficult time with biological challenges between July and September Bakkafrost said “The fourth quarter gave opportunities with good biological development to grow the fish, resulting therefore in reduced harvest volumes, concentrating on growing into the first half of 2024 to larger sizes.”

The Bakkafrost group recorded Q4 revenues of 1,562 million Danish kroner (£179.5 million) against DKK (£223m) in the corresponding period in 2022.

The operational EBIT was DKK 356 million (£41m) during the period against DKK 376 million (£43m) 12 months earlier.

As forecast last year, Bakkafrost Scotland produced greatly reduced revenue of DKK 84 million (£9.6m) against DKK 298 million (£34m) during the quarter along with an operational loss of minus DKK 104 (-£12m). This was an improvement on Q4 2022 when the operational loss was -149 million (-£17m).

The Faroe Islands operations were in profit, but even so both revenues and profits were down on Q4 2022 with earnings at DKK 1,478 million (almost £170m) against DKK 1,641 million (£188m) a year earlier.

The Faroes operational EBIT or profit was DKK 460 million (£53m) compared with DKK 525 million (£60m) in Q4 2022.

Commenting on the results, CEO Regin Jacobsen said: “Bakkafrost delivered strong results in the fourth quarter 2023 with improved operating margin.

“Markets have been strong, with high demand in all regions. Bakkafrost salmon was well appreciated with good premium in the market, especially strong development in North America, which increased to 25% of the salmon from Bakkafrost Faroe Islands.

He added: “I am proud of the progresses from the high focus on fish health and welfare in the Bakkafrost’s operation in the Faroe Islands, which have resulted in a very robust and strong farming regime.

“The average monthly survivability for the full year was 99,39% with average harvest weight of 4.6 kg HOG and 90% superior grade.

“In Scotland our journey to robust operation is still in progress – last year the monthly survivability was 98,29% with average harvest weight of 4.2 kg HOG and 89% superior grade.”

The Bakkafrost report said that “ after a troublesome third quarter in Scotland with biological challenges – the fourth quarter gave opportunities with good biological development to grow the fish, resulting therefore in reduced harvest volumes, concentrating on growing into H1 2024 to larger sizes.”