Lerøy Seafood Group ASA

Q2 2020 Results

SECOND QUARTER AND FIRST HALF OF THE YEAR  

In Q2 2020, Lerøy Seafood Group (LSG) reported revenue of NOK 4,712 million, compared with NOK 5,340 million in the same period in 2019. Operating profit before fair value adjustment related to biological assets was NOK 322 million in Q2 2020, compared with NOK 774 million in Q2 2019. Exclusive of earnings from the Wild Catch segment, this corresponds to an EBIT per kilo before value adjustment related to biological asset in Q2 2020 of NOK 7.8 compared to NOK 19.0 for the same period in 2019. The most significant factor behind the fall in earnings from the same period last year is the lower margin per kilo for Farming, caused by significantly lower prices realised.

The Group reports revenue of NOK 10,017 million for the first half of 2020, compared with NOK 10,086 million in the first half of 2019. Operating profit before fair value adjustment related to biological assets for the first half of 2020 was NOK 1,138 million compared with NOK 1,465 million for the first half of 2019. Profit before tax and fair value adjustment related to biological assets for the first half of 2020 was NOK 1,037 million compared with NOK 1,524 million for the first half of 2019.

• “Earnings in Q2 2020 are substantially lower than expected at the start of the year,” says CEO Henning Beltestad. “The key factor behind this is the fall in salmon prices caused by the impact on demand of the COVID-19 pandemic. We have no way of knowing how long we will be affected by the pandemic, but we are experiencing that the Group’s model of close integration with our customers has grown even stronger throughout these challenges. We are confident that the long-term demand for healthy and sustainable high-quality seafood has not changed and will remain high,” says Henning Beltestad. “Our main focus has been to keep the value chain open and ensure deliveries to our customers. We have succeeded in this. I am proud of and grateful for the hard work and determination my colleagues have shown,” says CEO Henning Beltestad.

THE WILD CATCH SEGMENT  

Lerøy Havfisk’s primary business is wild catches of whitefish. The total catch volume for Lerøy Havfisk was 19,708 tonnes in Q2 2020, compared with 15,860 tonnes in Q2 2019. Catch volumes for the main species in Q2 2020 were 1,972 tonnes of shrimp, 2,299 tonnes of cod, 6,218 tonnes of saithe and 1,046 tonnes of haddock. The catch distribution in Q2 2019 was 6,332 tonnes of shrimp, 3,009 tonnes of cod, 2,250 tonnes of saithe and 928 tonnes of haddock.