Lerøy Seafood Group ASA

Q1 2020 Results

LERØY SEAFOOD GROUP FIRST QUARTER 2020 

In Q1 2020, Lerøy Seafood Group (LSG) reported revenue of NOK 5,305 million, compared with NOK 4,746 million in the same period of 2019. Operating profit before fair value adjustment related to biological assets was NOK 816 million in Q1 2020, compared with NOK 691 million in Q1 2019.

• “In the first quarter of 2020, earnings for the Farming segment and Wild Catch segment were up from Q1 2019, while earnings for the VAPS&D segment were down,” explains CEO Henning Beltestad. He goes on to say: “The Covid-19 pandemic started to have an impact on operations in the first quarter, worsening throughout the first quarter and into the second quarter. I am very proud of the Group's employees, who have found constructive solutions and displayed a wonderful determination, working extremely hard to keep the Group's value chain open and ensure deliveries to our customers.” 

The Group’s associates play an important role, and reported a loss of NOK 17 million in Q1 2020, compared with a profit of NOK 73 million in Q1 2019. Corresponding figures before fair value adjustment related to biological assets were NOK 12 million in Q1 2020 and NOK 94 million in Q1 2019.

The Group’s profit before tax and fair value adjustment related to biological assets was NOK 734 million in Q1 2020, compared with NOK 748 million in Q1 2019. The estimated tax expense for the quarter is NOK 49 million, compared with NOK 112 million in the same period of 2019.

This constitutes earnings per share before fair value adjustment related to biological assets of NOK 0.91 in Q1 2020, compared with NOK 0.97 per share in Q1 2019.

At 31 March 2020, net interest-bearing debt was NOK 3,003 million and the equity ratio was 59,5%.

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 Q1 2020 was 25,009 tonnes, compared with 20,536 tonnes in Q1 2019. Catch volumes for the main species in Q1 2020 were 12,530 tonnes of cod, 5,198 tonnes of haddock and 3,602 tonnes of saithe. The catch distribution in Q1 2019 was 8,881 tonnes of cod, 5,246 tonnes of haddock and 3,214 tonnes of saithe. The value of fish on inventory for Lerøy Havfisk increased by NOK 59 million in Q1 2020 compared with an increase of NOK 37 million in Q1 2019. Average prices for all species saw an increase of 13% in Q1 2020 when compared with the same period in 2019. Prices realised were up 13% for cod, 12% for haddock and 33% for saithe, all compared with Q1 2019.