HIGH ACTIVITY. CLEAR POTENTIAL FOR IMPROVEMENT.
In the third quarter of 2023, Lerøy reports a turnover that is 8% higher than
last year. Operational EBIT in Q3 2023 amounts to MNOK 631 compared to MNOK 833
in the same quarter last year. In Farming, earnings are, as previously
mentioned, affected by one-time effects related to the early harvest of fish
with ISA detection. In Wild Catch, the quotas for 2023 are lower than in 2022,
affecting earnings negatively. Downstream activities, VAPS&D, delivered
significantly better earnings than the same quarter last year.
At the end of the third quarter and the beginning of the fourth quarter, we have
faced challenges at some sites resulting in lower production than expected. This
affects the expected harvest volume in 2023 and 2024. For 2024, we now expect a
harvest volume of approximately 193,500 GWT, including jointly controlled
operations, says Henning Beltestad.
A RANGE OF MEASURES IMPLEMENTED
To achieve our goals in Farming for 2025, we have implemented a range of
measures where the focus on increased smolt quality, investments in new
technology, and the implementation of Lerøy Way are crucial. We have great
confidence in these measures, and their effects are expected to gradually become
apparent in the form of higher growth in through 2024, says Henning Beltestad.
LERØY AND THE NORWEGIAN AQUACULTURE INDUSTRY PERFORM WELL IN INTERNATIONAL
COMPARISONS
The Coller FAIRR Protein Producer Index is a ranking of the world's 60 largest
publicly traded companies producing meat, fish, and dairy products. They are
measured on sustainability, including climate footprint, environmental impact,
animal welfare, freshwater consumption, antibiotic consumption, social rights,
and more. These measurements form the Coller FAIRR Index. The index for 2023 was
announced in November, and Lerøy was ranked second in this index.
We have areas to improve, of course, but this is an important recognition of
Lerøy and the work our employees do. Norwegian seafood is among the most
sustainable protein we can consume, and Lerøy is proud to serve millions of
sustainable meals to the world every day throughout the year, says CEO Henning
Beltestad.
OUTLOOK
Compared to the level in the third quarter, release from stock costs in Farming
in the fourth quarter are expected to be at the same level, says CEO Henning
Beltestad.
Harvest volume, including jointly controlled operations, is expected to be
169,500 GWT in 2023 and 193,500 GWT in 2024. A lower quota affects earnings in
Wild Catch. Downstream activities show improvement.
Historically, demand for seafood has held up relatively well in economic
downturns. We find that our value chain meets the market's needs, and Lerøy is
well-positioned for the future, concludes Henning Beltestad.
Queries may be addressed to 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.