Lerøy Seafood Group ASA

Leroy Seafood reported Q1 2025 operational EBIT of NOK1.049 billion to NOK1.050 billion. Management said salmon spot prices were about NOK90 lower than in Q1 2024, while Sjur Malm said the salmon value-chain margin was “more or less unchanged” year over year. In farming, Leroy Aurora harvested about 7,000 tons with EBIT all inclusive of about NOK30, Leroy Midt harvested about 16,000 tons with EBIT all inclusive of NOK32, Leroy Sjotroll harvested close to 15,000 tons with EBIT all inclusive of NOK18, and Scottish Sea Farms posted operational EBIT of NOK9. VAP, sales and distribution had operational EBIT of NOK212 million versus NOK176 million a year ago; wild catch had operational EBIT of about NOK150 million, with roughly NOK50 million of negative inventory effect mentioned. For 2025, farming guidance was reiterated at 50,000 tons for Leroy Aurora, 75,000 tons for Leroy Midt, 70,000 tons for Leroy Sjotroll, and 16,000 tons for Leroy’s share of Scottish Sea Farms, or 211,000 tons in total including Scotland. The board proposed a dividend of NOK2.5 per share.

Henning Beltestad framed the quarter as evidence that Leroy’s fully integrated value chain is working, especially as supply increases and customers value sustainability, traceability, stability, and convenience. He emphasized that biology is improving, shielding technology is producing good results, and the company’s farming target of 200,000 tons is within reach if the current operational improvements continue. His tone was confident and upbeat, especially on the outlook for farming and VAP, while acknowledging that wild catch remains challenging because of quota reductions.

Sjur Malm said the quarter showed improvement starting to appear in the financials after weaker results in prior periods. He highlighted that salmon price was down NOK19 versus the comparable quarter, yet the salmon margin through the value chain was essentially unchanged because of cost cuts, better quality, higher superior share, and higher harvest weights. He also noted a strong operational cash flow, working capital build from higher standing biomass, total assets of around NOK40 billion, an equity ratio just above 50%, and net interest-bearing debt down NOK700 million in the quarter. He said maintenance CapEx is around NOK1 billion, increased in NOK terms because of a weaker Norwegian krone, and that the company is investing in farming technology, smolt quality, whitefish upgrades, and downstream operations.

There was no analyst Q&A included in the transcript. The closest thing to investor pushback was management’s discussion of external risks: lower salmon spot prices, reduced wild-catch quotas, and the ongoing debate in Norway over possible changes to the aquaculture licensing regime. Management’s answer was to stress that current regulations still allow meaningful improvement and that the business is making progress through operational and technology initiatives.