Bakkafrost sees lower profits overall, but better revenue for Scotland

The group produced an operational EBIT of 280 million Danish kroner (£31.4m) against DKK 356 million (£40m) a year earlier.

However, Scottish revenues were well up this time – from DKK 84 million (£9m) to DKK 286 million (£32m) this time. The operational loss was reduced considerably – from DKK 104 million (£11.6m) to DKK 31m (£3.4m).

Bakkafrost CEO Regin Jacobsen said mortality in Scotland was down and the quality of fish was high.

Summing up Bakkafrost’s performance during the October to December period, he commented: “The Freshwater and Farming operations in Faroe Islands had a strong development in this quarter.

“Biological performance remains robust, with solid growth, effective sea lice management, and harvesting of large fish.

“We are also pleased with the continued progress in our freshwater segment, which has set new production records for the second consecutive quarter of producing large, high-quality smolt. This improved efficiency is helping to reduce costs.”

On Scotland, he continued: “The  transition to producing large, high-quality smolt at Applecross has begun.

“As we scale up production this year and gradually replace legacy fish from our marine farms with high-quality fish, we expect a fundamental transformation of our farming operations from next year onwards.

“Overall, we are pleased with the de-risking of our Scottish operations in 2024. Mortality has decreased significantly, and fish harvested in the quarter was large, contributing to the highest full-year EBITDA since the acquisition.

“As we await the full replacement of legacy fish, we will continue a similar de-risking strategy in 2025, before starting the journey to ramp up production from 2026.”

Jacobsen said that stronger supply growth had contributed to downward price pressure with the market price for salmon was weaker than expected this quarter, negatively impacting the margin.

He said: “Three major projects are progressing well – the Applecross and Skálavík hatcheries and the expansion of Havsbrún feed factory. These projects are crucial to achieving our goals for 2028 and beyond with robust large smolt, best feed and good fish welfare.”

The total combined harvest in Q4 was 20,478 tonnes (17,067 tonnes in Q4 2023) with the Scottish harvest more than trebling from 1,064 tonnes to 3,840 tonnes. The Faroese harvest was up slightly by 633 tonnes to 16,638 tonnes.