Lerøy Seafood Group ASA Reports Resilience Amid Salmon Market Headwinds in Q3 2024

Biology Advances Despite Market Pressure

Third-quarter performance for Lerøy Seafood Group ASA unveiled a consolidated operational EBIT of MNOK 412, reflecting the dual pressures of depressed salmon and trout valuations alongside biological challenges in Norwegian farming regions. The Farming segment generated MNOK 310 in operational EBIT, while Scottish Seafarms demonstrated notable year-over-year profitability expansion, underscoring robust breeding achievements despite sector-wide pricing constraints.

The company recalibrated 2024 harvest expectations to 190,000 GWT (down from prior guidance of 193,500 GWT), accounting for elevated seawater temperatures in Northern Norway that have exacerbated sea lice management requirements. This adjustment, combined with Scottish Seafarms’ 20,000 GWT contribution, reflects operational realities while maintaining strategic focus on biological excellence rather than volume maximization.

Submerged Cage Technology: The Path to Operational Transformation

Looking ahead, Lerøy Seafood Group ASA is making substantial commitments to technological innovation. The company plans to allocate MNOK 350 toward expanding submerged cage infrastructure during the first half of 2025, targeting protection of approximately 45% of the salmon population by mid-year. Early operational data reveals compelling results: this shielding methodology reduces sea lice treatment frequency by nearly 90% compared to conventional farming approaches, while simultaneously improving survival metrics, superior-quality fish ratios, and overall welfare standards.

This strategic pivot addresses one of salmon farming’s most persistent operational challenges, transforming what has historically been a constraint into a competitive advantage through capital-intensive innovation.

Value-Added Downstream Operations Reach New Milestone

The Value-Added Processing and Sales & Distribution segment (VAP S&D) posted MNOK 220 operational EBIT in Q3 2024, achieving MNOK 884 across a 12-month rolling basis—a fresh company record. This sustained performance trajectory stems from operational refinements and expanded utilization of the integrated value chain, indicating that downstream diversification provides meaningful earnings stability independent of primary commodity price fluctuations.

Wild Catch Segment Faces Structural Headwinds

Contrasting sharply with farming strengths, the Wild Catch segment reported MNOK -58 operational EBIT, representing significant deterioration from the prior-year quarter. Multi-year quota reductions have created persistent obstacles for the trawling fleet, while coastal processing facilities face underutilization pressures compounded by elevated raw material procurement costs. This segment reveals the geographic and operational constraints of traditional wild capture within the company’s portfolio.

2025 Guidance: Cautious Optimization

Lerøy Seafood Group ASA projects Norwegian harvested volumes of approximately 195,000 GWT in 2025, combining with 16,000 GWT from Scottish Seafarms to yield total expectations of roughly 211,000 GWT. This trajectory reflects progress toward the longer-term 200,000 GWT target for Norwegian operations, supported by continuing enhancements in smolt and roe quality alongside systematic process optimization.

The company maintains confidence that market cyclicality will eventually favor improved pricing, while its strategic focus on biological performance, integrated value-chain economics, and sustainability credentials positions Lerøy Seafood Group ASA to capitalize on growing institutional demand for responsibly-sourced aquaculture products across European downstream channels.