SalMar Q2 profit down as winter issues continue to impact

SalMar, the world’s second largest producer of Atlantic salmon, unveiled an operational EBIT or profit of NOK 1.4 billion (just over £100m) during the April to June period this year, down from NOK 1.7 billion (£120m) a year earlier.

The results were weaker than what some analysts had been predicting but SalMar has described the period as producing a “solid performance”.

The company suffered badly from biological issues and jellyfish attacks earlier in the year and the effect from these carried through to the second period.

The slaughter volume was broadly unchanged at 44,800 tonnes.

In a positive message, CEO Frode Arntsen said: “SalMar showed solid operations, improved biological performance and delivered acceptable financial results in a period characterized by a challenging winter and start of the year.

“After sustained good efforts from all segments, we see positive development in key figures.”

He added: “At the same time, we have taken several measures to realize our ambition for further sustainable growth. We secured additional production capacity through the traffic light auction in Norway, and we were awarded 10,000 tonnes in new licenses in Iceland.”

SalMar’s operating income was slightly down on last year at NOK 5.83 billion (£426m) while the operating profit or EBIT of almost NOK 1.4 billion (£102m) against NOK 1.74 billion (£127m) in Q2 last year.

The company also warned that costs in Norway were becoming higher than expected in the current third quarter and less salmon was also being slaughtered in Norway.

In a significant move in March SalMar launched the Salmon Living Lab, an ambitious innovation and R&D initiative with Cargill, a global food and feed supplier, with the aim of identifying and developing more sustainable solutions for salmon farming.

The venture, it said, has attracted considerable interest from various companies in the value chain, voluntary organisations and other stakeholders eager to contribute.

This month Kristine Hartmann, current director of development at SalMar Aker Ocean, was appointed general manager of the Salmon Living Lab.

She will lead development of the initiative going forward and key milestones will be communicated from the website www.salmonlivinglab.no.

SalMar was also named by Time magazine in June as one of the world’s most sustainable companies.