Lerøy Seafood Group ASA: Progress in biological performance. Promising shielding technology enhances fish welfare.

GOOD BIOLOGICAL DEVELOPMENT IN THE FIRST QUARTER OF 2024. PROGRESS IN VAP S&D CONTINUES.

Today, Lerøy Seafood Group ASA reports a consolidated operational EBIT of MNOK 842 for the first quarter of 2024. Of this, Farming accounts for MNOK 576, with seasonally low harvest volumes. CEO Henning Beltestad says; We have had a good quarter in Farming with strong biological development. Considering the very cold sea temperatures, our fish are growing well. It is also very pleasing to note significant improvement in biology and earnings at Scottish Seafarms.

Within Wild Catch, an operational EBIT of MNOK 187 is reported in the quarter, traditionally high season, driven by good catch volumes and high cod prices. This segment will be challenging going forward due to lower quotas, where our quota and basis for operations will be further reduced as a result of the new quota report ("Kvotemelding”), Beltestad continues.

The downstream operations (VAP S&D) generates an operational EBIT of MNOK 176 in the first quarter, driven by operational improvements, high capacity utilization in Norway, and increased product prices. With our fully integrated value chain, we have a favorable position with high processing capacity in Norway, which we have utilized well in the quarter. We have good momentum and have succeeded in reversing the trend in several downstream businesses, Beltestad says.

INVESTMENTS IN FISH WELFARE WILL CONTRIBUTE TO ACHIEVING STRATEGIC GOALS FOR 2025

Looking into the future, Beltestad comments: At Lerøy, we are taking new steps towards achieving ambitious, strategic goals for 2025. Our implementation of shielding technology is showing promising results, with minimal need for sea lice treatments. We are introducing better genetics and have made important process improvements in roe and smolt. The result is a more robust fish that grows better. We are also increasing the share of trout production, which historically has better biological performance, at Lerøy Sjøtroll.

These measures are crucial for fish welfare and are of great importance for our financial development. Due to reduced license capacity at Lerøy Sjøtroll (following the traffic light system), we have chosen to adjust the harvest target for Norway in 2025 to 200,000 GWT. We have confidence in further progress in VAP S&D, in line with increasingly better utilization of our unique value chain, concludes the CEO.

For inquiries, please contact CEO Henning Beltestad or CFO Sjur S. Malm.

ABOUT LERØY SEAFOOD GROUP

Lerøy Seafood Group is a global seafood group headquartered in Bergen. The company's approximately 6,000 employees annually handle between 350,000 and 400,000 tons of seafood through the company's value chain, equivalent to about 5 million meals every day. The group has a vertically integrated value chain for redfish and whitefish, as well as significant third-party product activity.

The Group's values, "open, honest, responsible, and creative," are the basis for the Group's total activities, and efforts are made towards the goal of creating the world's most efficient and sustainable seafood value chain. The target for annual return on capital employed (ROCE) is 18%. The group has set ambitious sustainability goals, including a 46% reduction in greenhouse gas emissions by 2030.

To ensure food safety for the consumer, we actively work in all stages of the value chain. As a fully integrated seafood supplier, we have the opportunity to control and quality-assure our products throughout the entire value chain. This way, we can meet the seafood market's increasingly stringent requirements for traceability, food safety, product quality, cost-effectiveness, sustainability, and continuous delivery.

 

Attachments

• LSG Q1 24 presentation
• LSG Q1 24 report