P/F Bakkafrost

Second-quarter revenue was DKK 1.8 billion, up 16% year on year. Operational EBIT was DKK 273 million versus DKK 65 million last year, and earnings per share were DKK 2.31. Fair value adjustments were -DKK 406 million versus -DKK 187 million last year, resulting in a period loss of DKK 161 million. For the first half, revenue was DKK 3.5 billion and operational EBIT was DKK 816 million, with cash from operations at DKK 273 million in the quarter and DKK 727 million year to date. Group all-inclusive margin improved from DKK 2.82 per kg to DKK 9.12 per kg. Faroes farming EBIT was DKK 109 million on 26,700 tgw harvested, while Scotland’s farming operation posted an operational EBIT of -DKK 139 million on 3,100 tgw. The balance sheet showed equity ratio at 58%, cash around DKK 327 million, and net debt increasing from DKK 3.8 billion to DKK 4.0 billion. Full-year 2026 guidance was maintained at 117,000 tgw harvested, including 97,000 tgw in Faroes and 20,000 tgw in Scotland; feed production is expected around 175,000 tgw, fishmeal/fish oil production is expected to be lower than last year, and the DKK 5 billion investment program remains unchanged.

Regin Jacobsen emphasized that Bakkafrost’s integrated value chain is a core advantage, especially in a market where marine ingredient prices have risen sharply and raw materials are less available. He highlighted Havsbrún’s inventory position and formulation flexibility as key to protecting fish health and product quality while adapting feed recipes. His tone was constructive overall, especially on the Faroes and the market outlook, but he was clear that Scotland still needs further improvement and that the company is actively de-risking while Applecross ramps up.

The financial update focused on the improved quarter and the balance sheet. Operating cash flow was DKK 273 million in Q2 and DKK 727 million in the first half, with operating cash flow covering investments and dividends in the period. The balance sheet remained solid with a 58% equity ratio, cash of around DKK 327 million, undrawn bank facilities of DKK 1.3 billion, and net debt at DKK 4.0 billion after investments, working capital, and dividend payments. The CFO also noted inventories rose by DKK 448 million to DKK 1.2 billion, largely reflecting feed and raw material stock buildup, and said fishmeal inventories provide self-sufficiency into Q2 next year.

Analysts focused on feed inventories, Scottish smolt sourcing, U.S. sales, and raw material inflation. Management said fishmeal and oil inventories are sufficient into Q2 next year, that the current inventory level is not necessarily unusually high versus prior years, and that the company is introducing new raw materials to balance rising costs while keeping high marine ingredient inclusion. On Scotland, management acknowledged problems with externally sourced smolt but said it is selectively keeping only better batches while Applecross ramps, with the goal of improving volume and biology. Management also confirmed more Faroese sales to the U.S. going forward, saying the U.S. is already a strong market for Bakkafrost and not just a tariff-driven shift.