Bakkafrost profit crashes 83% as salmon prices drop and loss widens

Investing.com -- Bakkafrost’s (OL:BAKKA) operational EBIT fell sharply in the second quarter of 2025, dropping to DKK 65 million from DKK 388 million in the same period last year, as lower salmon prices and incident-related costs in Scotland weighed on results, the company reported on Tuesday.

The Faroese salmon farmer reported operating revenue of DKK 1.58 billion for the quarter, down from DKK 2.07 billion in 2024. 

The company posted a net loss of DKK 138 million, compared with a loss of DKK 117 million a year earlier. 

Earnings per share were negative DKK 2.33, against negative DKK 1.97 in the same quarter last year.

Harvest volumes rose, with 23,054 tonnes gutted weight compared with 21,592 tonnes in the second quarter of 2024. 

The Faroe Islands contributed 16,020 tonnes, up from 10,226 tonnes, while Scotland delivered 7,034 tonnes, down from 11,366 tonnes. 

Despite higher volumes, farming in the Faroe Islands generated an operational EBIT of only DKK 4 million, compared with DKK 206 million last year. 

In Scotland, the farming segment turned to a loss of DKK 127 million from a profit of DKK 111 million. Incident-based mortality costs in Scotland reached DKK 39 million, compared with DKK 24 million a year earlier.

The freshwater segment in the Faroe Islands improved its operating EBIT to DKK 85 million from DKK 74 million, with smolt transfers rising to 5.4 million from 4 million. 

The average smolt weight increased 19% to 464 grams. In contrast, the freshwater segment in Scotland reported an operating EBIT loss of DKK 72 million, compared with a loss of DKK 31 million in 2024. 

Smolt transfers dropped to 0.9 million from 1.5 million, while incident-related mortality costs increased to DKK 52 million from DKK 21 million.

The fishmeal, oil and feed segment posted revenue of DKK 665 million, compared with DKK 687 million last year. 

Operational EBIT was DKK 89 million, down from DKK 112 million. Feed sales increased to 37,533 tonnes from 32,949 tonnes. Raw material intake more than doubled to 159,951 tonnes from 90,575 tonnes.

The Services division reported operating revenue of DKK 215 million, up from DKK 206 million, and operational EBIT of DKK 17 million, compared with DKK 12 million last year. 

The Sales and Other division posted revenue of DKK 2.20 billion, down from DKK 2.58 billion, with an operational EBIT of DKK 97 million against a loss of DKK 57 million in the prior year.

The company’s financial position showed total assets of DKK 17.6 billion at the end of the first half, little changed from DKK 17.7 billion at year-end 2024. 

Equity stood at DKK 10.4 billion, down from DKK 11.2 billion, while the equity ratio slipped to 59% from 63%. Net interest-bearing debt increased to DKK 3.82 billion from DKK 3.00 billion at the end of last year.

Cash flow from operations turned negative at DKK 204 million, compared with an inflow of DKK 1.04 billion in the same quarter of 2024. 

For the first half, operating cash flow was DKK 386 million, down from DKK 1.71 billion last year. Cash and cash equivalents decreased to DKK 205 million from DKK 481 million at year-end.

Bakkafrost raised its 2025 harvest guidance to 82,000 tonnes in the Faroe Islands and 22,000 tonnes in Scotland, giving a total target of about 104,000 tonnes gutted weight. 

The company also reaffirmed a DKK 5 billion investment plan for 2026 to 2030, focusing on smolt capacity, feed production, farming technology and new processing facilities.