After wrapping up a “demanding 2024” that featured environmental challenges such as jellyfish and sea lice, Frøya, Norway-headquartered salmon-farming firm SalMar prioritized building biomass in this year’s opening quarter.
The move resulted in the firm harvesting late in the period when spot prices were at their lowest, thereby affecting price achievement and the company’s Q1 results as a whole, according to CEO Frode Arntsen.
Many of the fish the company were able to harvest also suffered from wound issues and low average weights, specifically at its farms in central Norway, which led to a downgrading of quality, increased costs, and reduced earnings.
“All of this combined means that today [20 May 2025], we deliver a quarter that is far from where we want to be,” Arntsen said.
According to SalMar’s Q1 2025 report, the firm’s operational EBIT was NOK 798 million (USD 77.6 million, EUR 69 million), compared to NOK 1.5 billion (USD 145.8 million, EUR 129.7 million) in Q1 2024. Its operating revenues stood at almost NOK 5.2 billion (USD 505.5 million, EUR 449.5 million), which were down from the NOK 6.6 billion (USD 641.7 million, EUR 570.5 million) recorded in the same period a year previously.
The price of salmon in Q1 2025 averaged NOK 91.30 (USD 8.88, EUR 7.89) per kilogram, down from NOK 110.10 (USD 10.70, EUR 9.51) a year previously, according to the report.
The company’s overall harvest volume was 42,700 MT, and the operational EBIT per kilogram was NOK 18.70 (USD 1.82, EUR 1.62). In Q1 2024, these totals amounted to 52,900 MT and NOK 28.80 (USD 2.80, EUR 2.49), respectively.
Though the move to harvest late led to a tough financial quarter, it also resulted in the firm’s biomass reaching a seasonal record at the end of Q1, with that momentum having carried over into Q2.
“In the second quarter, we expect somewhat higher volumes through our facilities as a result of the increased volume from the farming segments,” Arntsen said. “This gives us a good starting point for the growth we expect from ourselves in 2025.”
Therefore, SalMar’s harvest guidance for 2025 remains unchanged, with its operations in Norway expected to produce 256,000 MT of salmon, Scotland expected to produce 32,000 MT, Iceland expected to produce 15,000 MT, and its SalMar Aker Ocean operations are expected to produce 7,000 MT.
SalMar’s Q1 report also advised its Sales and Industry segment, which sells all the fish the group harvests in Norway, generated operating revenues of NOK 5.2 billion (USD 505.6 million, EUR 449.5 million) in the quarter, down from NOK 6.4 billion (USD 622.3 million, EUR 553.2 million) previously. Its operational EBIT improved by NOK 128 million (USD 12.4 million, EUR 11.1 million), however, to NOK 91 million (USD 8.8 million, EUR 7.9 million).
The firm’s fixed price contract share in the period was 40 percent, with “continued positive contribution,” especially at the end of the period when spot prices were at their lowest. In Q2, the contract rate is expected to be around 30 percent. For the full year 2025, it’s expected to be 25 percent, with the uncertainty still surrounding global tariffs playing a role, according to Arntsen.
“We still see the demand for our products is very good in all markets. Tariffs are never a good thing, but for now, the volume is being absorbed as usual,” Arntsen said.
Looking ahead, the report highlighted that in line with its untapped organic growth and acquisition of new capacity in 2024 and 2025, SalMar has an estimated volume potential of 308,000 MT in Norway, 45,000 MT in Scotland, 26,000 MT in Iceland, and 13,000 MT from SalMar Aker Ocean, of which SalMar recently became the full owner.
This implies a total volume projection for the group of 370,000 MT, including relative share from Scottish Sea Farms. This forecast doesn’t include the potential volume from its merger with Wilsgård, announced in February and finalized in April this year.
“The merger between Wilsgård and SalMar Farming brings together two strong players in fisheries and aquaculture, contributing to regional development. The merger is expected to increase operational efficiency, reduce costs, and enhance financial resilience,” SalMar said when the deal was finalized.
