Image: Bakkafrost / FIS

Bakkafrost Sees Mixed Regional Results in Q4 2023

Bakkafrost recorded revenues of DKK 1,562 million (USD 226.42 M) in the fourth quarter, compared with DKK 1,940 million (USD 281.21 M) in the corresponding quarter of 2022. Operational EBIT was DKK 356 (USD 51.6) in the quarter. The full-year revenues in 2023 were DKK 7.1 billion (USD 1.03 b), operational EBIT of DKK 1.5 billion (USD 220 M), and harvest volumes of 73,000 tonnes

Source: Bakkafrost

Faroe Islands Revenues of DKK 1,478 million (USD 214.24 M)(1,641 million (USD 237.87 M))

• Operational EBIT of DKK 460 million (USD 66.68 M) (525 million (USD 76.1 M))

Scotland Revenues of DKK 84 million (USD 12.18 M)(298 million (USD 46.2 M))

• Operational EBIT of DKK -104 million (USD -15.08 M)(-149 million (USD -2.75 M))

Commenting on the result, CEO Regin Jacobsen said:

“Bakkafrost delivered strong results in the fourth quarter 2023 with improved operating margin. Markets have been strong, with high demand in all regions. Bakkafrost salmon was well appreciated with good premium in the market, especially strong development in North America, which increased to 25% of the salmon from Bakkafrost Faroe Islands.

I am proud of the progresses from the high focus on fish health and welfare in the Bakkafrost’s operation in the Faroe Islands, which have resulted in a very robust and strong farming regime. The average monthly survivability for the full year was 99,39% with average harvest weight of 4.6 kg HOG and 90% superior grade. In Scotland our journey to robust operation is still in progress – last year the monthly survivability was 98,29% with average harvest weight of 4.2 kg HOG and 89% superior grade.

After a troublesome third quarter in Scotland with biological challenges – the fourth quarter gave opportunities with good biological development to grow the fish, resulting therefore in reduced harvest volumes, concentrating on growing into H1 2024 to larger sizes.”

Source: Bakkafrost

During Q4 2023, the FOF segment sourced 53,552 tonnes (46,051 tonnes) of raw material. The Operational EBITDA margin was 25% (14%), and fish feed sales amounted to 39,354 tonnes (32,600 tonnes).

For the full year 2023, the FOF segment’s operational EBITDA margin was 23% (18%). During the full year 2023, Havsbrún sourced 467,037 tonnes (297,814 tonnes) of raw material.

In Q4 2023, the Freshwater segments in the Faroe Islands and Scotland released a total of 6.8 million (8.5 million) smolts combined:

• Freshwater FO: 5.1 million (5.0 million),
• Freshwater SCT: 1.7 million (3.5 million).

Source: Bakkafrost

In 2023, the freshwater segments have released a total of 23.2 (25.4) million smolts:

• Freshwater FO:  14.2 million (14.4 million),
• Freshwater SCT: 9.0 million (11.0 million).

In Q4 2023, the Freshwater FO segment made an operational EBIT per kg released smolt of 26.75 DKK/kg (USD 3.88) (34.55 DKK/kg (USD 5.01)), corresponding to 41.78 NOK/kg (48.26 NOK/kg). The Freshwater SCT segment made an operational EBIT per kg released smolt of -49.44 DKK/kg (USD -7.17) (-20.60 DKK/kg (USD 2.99)), corresponding to -77.23 NOK/kg  (-28.77 NOK/kg).

Source: Bakkafrost

The Farming segments achieved higher prices in Q4 2023 than in Q4 2022. Both Farming FO and Farming Scotland segments had lower harvest volume in Q4 2023 compared to Q4 2022. In Q4 2023, the Farming SCT segment had incident-based costs of DKK 48 million (USD 6..96 M) (DKK 83 million (USD 12.03 M)).

The total combined harvest in Q4 2023 of the farming segments in the Faroe Islands and Scotland was 17,067 tonnes gutted weight (24,474 tgw):

• Farming FO: 16,005 tgw (19,276 tgw),
• Farming SCT: 1,062 tgw (5,198 tgw).

Source: Bakkafrost

In 2023, the farming segments have harvested a total of 73,006 tonnes gutted weight (90,603):

• Farming FO: 52,408 tgw (66,686 tgw),
• Farming SCT: 20,598 tgw (23,917 tgw).

In Q4 2023, the Farming FO segment made an operational EBIT/kg of 4.01 DKK/kg (USD 0.58) (13.19 DKK/kg (USD 1.91)), corresponding to 6.27 NOK/kg (18.43 NOK/kg). The Farming SCT segment made an operational EBIT/kg of -44.97 DKK/kg (USD -6.52) (-32.64 DKK/kg (USD 4.73)), corresponding to -70.24 NOK/kg (-45.60 NOK/kg).

The Services segment made an operational EBIT/kg of 0.76 DKK/kg (USD 0.11) (0.05 DKK/kg (USD 0.0072)), corresponding to 1.18 NOK/kg (0.06 NOK/kg). The operational EBIT margin for the segment was 7% (1%).

<-- Source: Bakkafrost

The Sales & Other segment had a revenue of DKK 2,355 million (USD 341.36 M)(2,385 million (USD 345.71 M)) and an operational EBIT margin of 4% (4%). The operational EBIT/kg was 5.94 DKK/kg (USD 0..86) (4.33 DKK/kg (USD 0.63)), corresponding to 9.27 NOK/kg (6.05 NOK/kg).

The performance according to the previously used business segment structure can be found in the Appendix.

The long-term goal of the Board of Directors is that 30-50% of earnings per share shall be paid out as dividend. Bakkafrost’s financial position is strong with a solid balance sheet, a competitive operation and available credit facilities. The Board of Directors proposes to the Annual General Meeting that DKK 8.70 (USD 1.26)(NOK 13.26) per share shall be paid out as dividend. The Annual General Meeting will be convened on Tuesday the 30th of April 2024.

Source: Bakkafrost 

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Address:	Glyvrar
City:	Glyvrar
State/ZIP:	(FO-625)
Country:	Faroe Islands
Phone:	+298 40 50 00
Fax:	+298 40 50 09
E-Mail:	[email protected]
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