Lerøy Seafood Group ASA

Preliminary financial figures 2019

FOURTH QUARTER AND 2019 IN TOTAL      

In Q4 2019, Lerøy Seafood Group (LSG) reported revenue of NOK 5,239 million, compared with NOK 5,340 million in the same period of 2018. During the quarter, the Farming segment harvested 43,000 tonnes, compared with 49,000 tonnes in Q4 2018.

Operating profit before fair value adjustment related to biological assets was NOK 769 million in Q4 2019, compared with NOK 948 million in Q4 2018. Exclusive of earnings from the Wild Catch segment, this corresponds to an EBIT per kilo before value adjustment related to biological asset in Q4 2019 of NOK 17.0 compared to NOK 18.1 for the same period in 2018.

For 2019 in total, the Group reported revenue of NOK 20,427 million, compared with NOK 19,838 million in 2018. Operating profit before fair value adjustment related to biological assets was NOK 2,734 million in 2019 compared with NOK 3,569 million in 2018. Profit before tax and fair value adjustment related to biological assets was NOK 2,718 million in 2019 compared with NOK 3,697 million in 2018.

• “The fourth quarter saw extremely volatile prices for Atlantic salmon, but the underlying development during the quarter and the profit figures have in the main been as expected,” confirms CEO Henning Beltestad. “Looking back on 2019 as a whole, we experienced several unforeseen incidents in the Farming segment that had a negative impact on the harvest volume and, as a result, our cost levels. The onshore industry for whitefish has experienced challenges, while we can report a good development in downstream operations. At the start of 2020, we are confident that Lerøy has a sound position for profitable growth in the years to come,” he continues.

At 31 December 2019, net interest-bearing debt was NOK 2,641 million and the equity ratio was 58.8%.

THE WILD CATCH SEGMENT 

The wholly owned subsidiary Lerøy Havfisk's primary business is wild catches of whitefish. Lerøy Havfisk's total catch volume in Q4 2019 was 12,949 tonnes, compared with 11,515 tonnes in Q4 2018. Catch volumes for the main species in Q4 2019 were 7,215 tonnes of cod, 1,907 tonnes of haddock and 1,595 tonnes of saithe. The catch distribution in Q4 2018 was 6,534 tonnes of cod, 961 tonnes of haddock and 2,568 tonnes of saithe. In total, average prices for all species saw an increase of 11% in Q4 2019 when compared with the same period in 2018, mainly due to an increased share of fish species with a higher value in the total catch volume. Prices realised were up 10% for cod, 14% for haddock and 10% for saithe, all compared with Q4 2018.