Faroe Islands-based salmon-farming firm Bakkafrost delivered “exceptionally strong” biological performance in its Faroese operations during the second quarter of this year, but low global salmon prices dragged on earnings and continued biological issues in Scotland forced the firm to put its U.K. operations under Faroese control moving forward.
Delivering the group’s Q2 2025 results, CEO Regin Jacobsen said he was dissatisfied with the Q2 results, particularly pointing toward the considerable increase in the global salmon supply and subsequent reduction in prices as a negative impact.
Bakkafrost’s revenues for the period decreased by DKK 492 million (USD 76.8 million, EUR 65.9 million) to just under DKK 1.6 billion (USD 249.8 million, EUR 214.3 million), while its operational EBIT fell DKK 323 million (USD 50.4 million, EUR 43.3 million) to DKK 65 million (USD 10.1 million, EUR 8.7 million).
Regarding the global price decline, Jacobsen said that for superior salmon of 4 to 5 kilograms, the average spot price in the quarter was NOK 74.64 (USD 7.37, EUR 6.33) per kilo, compared to NOK 111.82 (USD 11.04, EUR 9.48) in Q2 2024.
“There's been a downward trend throughout the whole quarter and continuing into the third quarter,” he said. “The large increase in supply, especially from Norway but also from other regions, has contributed to the supply growth, put prices under pressure, and also reduced the price premium normally achieved for larger fish.”
Bakkafrost’s total combined harvest in the quarter amounted to 23,045 gutted weight tons (GWT) – up from 21,592 GWT in Q2 2024. Of this, Farming Faroe Islands (FO) supplied 16,020 GWT, and Farming Scotland (SCT) contributed 7,034 GWT, compared to 10,226 GWT and 11,366 GWT previously.
By region, Faroe Islands’ revenues for the period amounted to DKK 1.14 billion (USD 177.9 million, EUR 152.7 million), and its operational EBIT was DKK 211 million (USD 32.9 million, EUR 28.3 million), compared with DKK 1.19 billion (USD 185.8 million, EUR 159.4 million) and DKK 275 million (USD 42.9 million, EUR 36.8 million) in Q2 2024. For Scotland, the firm reported revenues of DKK 431 million (USD 67.3 million, EUR 57.7 million) and an operational EBIT loss of DKK 146 million (USD 22.8 million, EUR 19.6 million) were reported, compared to DKK 880 million (USD 137.4 million, EUR 117.9 million) and positive EBIT of DKK 113 million (USD 17.6 million, EUR 15.1 million) previously.
Jacobsen said biological performance in the Faroes reached the highest level ever recorded by the company in Q2, with robust growth and the best survival rates seen in more than a decade. Added to that, its freshwater operations in the region delivered smolt of unprecedented quality, according to Jacobsen.
“Faroese farming remains the backbone of the group, while the Scottish result shows the urgent need to complete the transition to robust, large smolt,” he said.
To address problems within its Scottish segment, Bakkafrost has placed these operations under the Faroese organization, led by the firm’s group freshwater director. More specifically, its Applecross hatchery site management will now house experienced staff from the Faroe Islands.
Jacobsen said that while freshwater Scottish operations have had ongoing challenges, sea-based operations in Scotland have shown good development, but some one-off events led to higher mortality in Q2.
Despite some ongoing issues, Bakkafrost has increased its overall harvest guidance for the full year of 2025 by 7 percent to 104,000 GWT, with 82,000 GWT expected to come from the Faroes and 22,000 GWT from Scotland.
“Our strategy and commitment remain firm. With robust biology, stronger balance, and clear investment priorities, Bakkafrost is well-positioned to deliver sustainable growth and long-term value. We are firmly on track,” Jacobsen said.
Elsewhere in the firm, its feed sales in Q2 2025 increased from 32,949 metric tons (MT) to 37,533 MT. The Fishmeal, Oil, and Feed (FOF) segment achieved revenues of almost DKK 664.7 million (USD 103.8 million, EUR 89 million) and an operational EBIT of DKK 88.7 million (USD 13.8 million, EUR 11.9 million), down 3 percent and 21 percent, respectively.
The Services and Sales & Other segments achieved quarterly operating revenues of DKK 215 million (USD 33.6 million, EUR 28.8 million) and DKK 2.2 billion (USD 343.5 million, EUR 294.7 million), respectively. These totals stood alongside operating EBITs of DKK 17 million (USD 2.7 million, EUR 2.3 million) and DKK 97 million (USD 15.1 million, EUR 13 million).
