In This Article:
Lerøy Seafood Group (“LSG”) is hosting its inaugural Capital Markets Day today September 22nd, 2022 at Hitra in Norway. The main topic will be LSG group strategy with a particular focus on the farming segment. Financial and operational targets for 2025 will be launched.
20 YEARS OF PROFITABLE GROWTH WHILE DEVELOPING A FULLY INTEGRATED VALUE CHAIN
Over the past 20 years LSG have developed a fully integrated value chain for seafood with an average revenue growth of 12% p.a. and a return on capital employed of 17% p.a.
LSG operates salmon and trout farms across three regions in Norway and has a substantial wild catch operation completing the product offering. The downstream operation in VAP S&D is growing and an increasing share of the groups raw materials is processed through the groups value chain. Our sales and processing operations now span 14 countries.
THE WORLD’S MOST EFFICIENT AND SUSTAINABLE VALUE CHAIN FOR SEAFOOD
Historically, value chains for seafood have been very fragmented and not suited to meet increasingly complex customer requirements. By comparison, LSG’s fully integrated value chain is more reliable, faster and cost efficient. The group’s sustainable value chain supports full traceability, quality assurance and increased value creation through product innovation. This is what our strategic customers expects and what we work for every day. This is our competitive advantage, comments CEO Henning Beltestad.
FINANCIAL AND OPERATIONAL TARGETS FOR 2025 AND BEYOND
Executing on strategy is the key for continued high profitability. Our targets presented at the Capital Markets Day today are:
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Revenues of NOK 50bn by 2030
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Market leading EBIT pr kg for farming and VAP S&D by 2025
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Segment EBIT, VAP S&D: NOK 1.25bn by 2025
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Segment EBIT, wild catch: NOK 500m by 2025
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Farming: Harvest volume (Norway) of 205,000 GWT by 2025
For the farming segment targets for operational efficiency towards 2025 include:
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Production cost reduction of NOK 4.6 pr kg in 2025 (measured in 2021 money)
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Economic feed conversion ratio of 1.19
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4.5 kg average harvest weight
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93% of salmon and trout to be superior quality
Like any business today, Lerøy is experiencing cost inflation, however we aim to counterbalance this through operational improvements, says Beltestad.
HOW WE WILL REACH OUR TARGETS
LSG will strengthen and develop our core business by:
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Improving biology, as described below
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Improving sales- and production planning
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Increasing share of volume to strategic customers and attract additional strategic customers
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Increasing the share of raw materials processed through the groups value chain
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Accelerate digital transformation and automation