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Introduction & Market Context
SalMar ASA (OB:SALM) reported its first quarter 2025 results on May 20, showing a challenging period marked by lower harvest volumes and reduced operational EBIT, while simultaneously advancing strategic growth initiatives. The Norwegian salmon farming giant faced biological challenges in some regions while making significant moves to strengthen its market position through acquisitions and sustainable practices.
The company reported an operational EBIT of 798 million NOK for Q1 2025, representing a significant decline of 691 million NOK quarter-over-quarter and 724 million NOK year-over-year. Total (EPA:TTEF) harvest volume reached 42,700 tons gutted weight, down 31.1% from the previous quarter and 10.2% from the same period last year.
Quarterly Performance Highlights
SalMar’s performance varied significantly across its operating segments during the quarter. The company’s results were particularly affected by weak price achievement in Central Norway, attributed to late harvests, high rates of quality downgrades, and lower average fish weights.
As shown in the following comprehensive financial summary:
Farming Northern Norway emerged as a bright spot, delivering an operational EBIT of 557 million NOK (28.9 NOK/kg) on a harvest volume of 19,300 tons. The segment benefited from strong biological performance, with the company noting "continued harvest of the spring 2023 generation and started harvest of autumn 2023 generation."
In contrast, Farming Central Norway struggled with an operational EBIT of 268 million NOK (12.7 NOK/kg) on 21,100 tons harvested, a significant drop from 42.6 NOK/kg in Q1 2024. Management explained that the focus was on building biomass during the quarter, resulting in lower harvest volumes.
The company’s quarterly profit and loss statement reveals the financial impact of these operational challenges:
SalMar Ocean, now a wholly-owned subsidiary, began harvesting from both semi-offshore units but reported negative operational results with an EBIT of -19 million NOK. The company has reduced its 2025 guidance for this segment to 7,000 tons, transferring additional volume to Farming Central Norway.
Icelandic Salmon faced particular difficulties with extraordinary mortality affecting results by 19 million NOK (-17 NOK/kg), while Scottish Sea Farms showed improved harvest volumes year-over-year but lower operational EBIT per kg.
Strategic Initiatives
Despite operational challenges, SalMar continued to strengthen its market position through strategic acquisitions and financial maneuvers. The company successfully issued 4.35 billion NOK in senior unsecured green bonds in January 2025 and extended a 1 billion NOK commercial paper in March, maintaining a strong liquidity position of 8.1 billion NOK as of Q1 2025.
SalMar’s balance sheet shows increasing assets and biomass, though with higher debt levels:
The company’s net interest-bearing debt including leasing increased to approximately 22 billion NOK, with the change from the previous quarter illustrated in this breakdown:
A key strategic focus has been expanding SalMar’s presence in Norway through acquisitions. The company announced a proposed merger with Wilsgård AS, which will add 5,844 MAB tonnes in production areas PO10 and PO11, and completed the settlement for a 45% controlling interest in AS Knutshaugfisk in February 2025.
These strategic moves are visualized in the following map showing the geographical expansion:
Sustainability Focus
SalMar emphasized its commitment to sustainable growth, highlighting recognition as "the best company in the global food and beverages sector for sustainable growth in 2025" by TIME Magazine and Statista. The company reported a 35% reduction in GHG intensity since 2020, with targets aligned with a 1.5°C climate scenario.
The sustainability metrics presented include:
The company also positioned salmon as a competitively priced protein source compared to alternatives, showing historical price ratio data:
Forward-Looking Statements
Looking ahead, SalMar maintained its overall volume guidance for FY 2025 while making internal adjustments between segments. The company expects "lower global supply growth rest of 2025 compared to growth experienced in the start of 2025" and noted continued strong demand for sustainable proteins.
For Q2 2025, management anticipates similar cost levels in Central Norway compared to Q1, slightly lower costs in Northern Norway, and continued high costs for Icelandic Salmon. The contract share is projected at around 30% for Q2 2025 and 25% for the full year.
SalMar’s strategic positioning focuses on sustainable growth through strengthening its value chain, leveraging its dedicated workforce and corporate culture, and capitalizing on growth potential in optimal locations. The company also noted the upcoming white paper on proposed changes in the regulatory framework for the Norwegian aquaculture industry, which could impact future operations.
Full presentation:
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