Norwegian land-based salmon producer Salmon Evolution recently posted its best fourth-quarter results to date.
Alongside setting a new harvest record of 1,729 metric tons (MT) of head-on gutted (HOG) fish in the period – compared to 1,104 MT in Q4 2023 – the company generated NOK 149.5 million (USD 13.3 million, EUR 12.9 million) in revenue, compared to NOK 88.9 million (USD 7.9 million, EUR 7.7 million) a year previously.
This translated into group EBITDA of NOK 9.2 million (USD 820,020, EUR 794,827), up from a loss of NOK 16.2 million (USD 1.45 million, EUR 1.4 million) previously. One of the biggest gains occurred within its Farming EBITDA, which climbed from NOK 43,000 (USD 3,832, EUR 3,715) to NOK 15.3 million (USD 1.4 million, EUR 1.3 million).
Presenting the firm’s latest results in Oslo, Norway, on 11 February, Salmon Evolution CEO Trond Håkon Schaug-Pettersen said that 2024 was a transformative year for the company that featured continued demonstration of its operational progress together with strong financial metrics.
“Going into 2025, we believe that we are in a very good spot – both operationally but also in terms of our Phase 2 expansion, which will really be a gamechanger for the company,” he said.
Schaug-Pettersen is referring to the Phase 2 expansion of Salmon Evolution’s Indre Harøy facilities, which should help the firm build biomass – a stated priority for the firm – Schaug-Pettersen explained. At the end of Q4 2024, Indre Harøy had a standing biomass of around 2,000 MT, but the expansion, for which the firm has partnered with Artec Aqua as a contractor, will enable the company to reap the full potential of its farm.
“Things are progressing very well operationally. We have a fully stocked farm, and we are very well-positioned to demonstrate continued operational progress over the coming quarters,” he said. “Phase 2 is also progressing according to plan – on time and on budget. Construction is taking place at a high pace, and it’s actually just a little over a year until our first Phase 2 smolt release.”
According to Schaug-Pettersen, the expansion will raise the firm’s annual production up to 18,000 MT and give it “a really unique platform for enabling strong organic growth in the years ahead.”
The expansion’s first harvest is expected in Q4 2026, and Salmon Evolution also has all the permits in place for a planned Phase 3 expansion, which will eventually take Indre Harøy’s capacity up to 36,000 MT HOG.
However, the firm is more focused first on growing again in 2025, according to Schaug-Pettersen.
“We are now very much looking forward to 2025, where we expect a significant uptick in production, which should again enable us to scale our cost base and support attractive margins,” he said.
The company is guiding a full-year harvest of 6,000 MT HOG to 6,500 MT HOG, including the sale of post-smolt. It’s also looking to generate Farming revenues of NOK 468 million (USD 41.7 million, EUR 40.4 million) and an EBITDA of NOK 112 million (USD 10 million, EUR 9.7 million).
Meanwhile, the company is about to make its first launch into retail with a smoked salmon product developed in partnership with processor and premium brand Lofoten. From the eighth week of 2025 onward, 100-gram packs will be available in Meny and selected Spar stores all over Norway.
“This is actually the first time that land-based salmon has been launched as a separate category in Norwegian retail. A key enabler for this launch is to be able to offer consumers more choice on the shelf and to also potentially appeal to a broader target group,” Schaug-Pettersen said. “We are really looking forward to this launch and [further] broadening our market reach as we increase our production and harvest regularity, which will open up additional commercial opportunities. It’s important for us to get our product out there [into the market]. This is a very interesting opportunity, and it demonstrates that there is a market out there for our alternative product.”
