In This Article:
Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Leroy Seafood Group ASA (LYSFF) reported excellent biological performance with a net growth in tons of 41% year on year.
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Record earnings in sales and distribution on a 12-month rolling basis, indicating strong market positioning.
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Significant improvements in biological performance and earnings in Scottish Sea Farm, contributing to overall profitability.
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The company achieved the highest net production in its history in 2024, with reduced mortality and declining costs.
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Leroy Seafood Group ASA (LYSFF) is making strides in sustainability, with initiatives like using protein from byproducts of European chicken in fish feed, reducing total emissions by 5% to 10%.
Negative Points
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Salmon and trout prices were significantly lower compared to the previous year, impacting revenue.
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Wildcatch earnings were affected by low quotas, despite an increase in prices.
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Higher feed costs and lower harvest weights in certain regions negatively impacted cost efficiency.
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The company faced challenges with lower quotas in the whitefish segment, affecting overall volumes.
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Net interest-bearing debt increased, partly due to substantial investments in submerged technology and other areas.
Q & A Highlights
Q: Can you elaborate on the biological performance improvements and their impact on the company's results? A: Henning Beltestad, CEO, explained that the company has seen excellent biological performance with a net growth in tons of 41% year-on-year. This improvement is starting to reflect in the results, particularly in Scottish Sea Farm, which has shown strong biological development and record earnings in sales and distribution on a 12-month rolling basis.
Q: What are the expectations for harvest volumes in 2025, and how do they compare to previous years? A: Henning Beltestad, CEO, stated that the harvest guidance for 2025 is 211,000 tons, including their share of Scottish Sea Farm. This is an increase from previous years, with specific targets set for different regions: 50,000 tons in Leroy Aurora, 75,000 tons in Leroy Midt, and 70,000 tons in Leroy Sjotroll.
Q: How is the company addressing the challenges in the Wildcatch segment? A: Henning Beltestad, CEO, acknowledged the impact of low quotas on Wildcatch earnings but noted an increase in prices. The company is focusing on improvements in all factories and expects better figures when quotas rise again. The Wildcatch volumes for the fourth quarter were about 10,000 tons compared to 12,500 tons last year.