Bergen, Norway-headquartered salmon-farming firm Grieg Seafood made some progress in the first quarter of 2025 with the transformation program it launched earlier this year, but the firm still had a difficult period financially, according to interim CEO Nina Willumsen Grieg.
Willumsen Grieg delivered the firm’s Q1 2025 results after just eight weeks in the CEO role following the company’s announcement at the end of March that then-CEO Andreas Kvame would be stepping down. She has, however, been with the company for the past 10 years, the last four of which she spent heading up its Rogaland operations.
“I'm entering this role at a challenging time for the company. Grieg Seafood has a long and proud history and a strong asset portfolio, but we're not happy with the results from the previous years. The combination of an ambitious capex program, biological challenges, and a turbulent geopolitical situation has left us with a financial situation that isn't sustainable,” she said. “Ensuring financial robustness is at the top of our agenda. I believe both [Grieg CFO] Magnus [Johannesen] and myself can bring new perspectives to the company while building on the foundation that is [here].”
Regarding the financial transformation program the firm initiated earlier this year, Willumsen Grieg highlighted that the reallocation of resources to the group’s Norwegian asset base is the main strategic change involved in the process.
“This is not only a shift toward Norway but also a shift from growth to profitability,” she said. “We will prioritize initiatives that strengthen equity, reduce debt, and protect cash flow to maximize shareholder value.”
In the first phase of the transformation strategy, which is now completed, Grieg placed a NOK 2 billion (USD 197.2 million, EUR 173.9 million) hybrid bond that will largely be used to repay the group’s debts and launched the sale of its smolt/post-smolt facility in Finnmark. Additionally, it reduced its committed capex in Canada by NOK 600 million (USD 59.2 million, EUR 52.2 million) by demobilizing one of its sites in Newfoundland.
According to Grieg’s Q1 2025 report, its operational EBIT was NOK 220.5 million (USD 21.7 million, EUR 19.2 million), compared to NOK 291.8 million (USD 28.8 million, EUR 25.4 million) in the corresponding period of 2024. However, that total represented an increase on Q4 2024, when the firm’s operational EBIT was NOK -74 million (USD -7.3 million, EUR -6.4 million).
Sales revenues in Q1 2025 totaled NOK 2.18 billion (USD 215 million, EUR 189.6 million), which was down from NOK 2.29 billion (USD 225.8 million, EUR 199.1 million) in the same period a year prior.
Its total harvest volume for the first three months of the year was 20,770 metric tons (MT), compared to 21,075 MT in Q1 2024. This gave an operational EBIT per kilogram of NOK 10.60 (USD 1.05, EUR 0.92) – down from NOK 13.80 (USD 1.36, EUR 1.20) in Q1 2024.
For the full year of 2025, Grieg has guided a harvest volume of 84,000 MT. Of this, its Finnmark operations are projected to supply 32,000 MT, its Rogaland operations are projected to supply 30,000 MT, its British Columbia operations should produce 12,000 MT, and Newfoundland should harvest 10,000 MT.
Commenting on these latest results, Johannesen said the first quarter of 2025 presented the firm with a new chapter after 2024 ended on a tough note that gave the company a lot to reflect on.
“We had a big impairment. We had challenging times in the company. I think it's safe to say that we are yet to be in the green. We are still focusing on our financial discipline. We are still focusing on strengthening our balance sheet, and we will continue doing so until we are able to provide the profitability that our shareholders expect,” he said. “Yet, we do show in this quarter that we are changing direction. We are moving from growth to profitability. We are moving from being ambitious in Canada to ensuring that we are not loss-making, focusing on Norwegian regions.”
Expounding on the group’s expectations for the remainder of the year, Willumsen Grieg said that she believes the market outlook and long-term fundamentals remain strong. However, she added that prices this year will be low.
“Norwegian export volumes were up 19 percent in the quarter, with higher superior grades and harvest weights. I believe it's been a long time since we've seen these good environmental conditions across the board,” she said. “Spot prices were consequently lower and more volatile than expected coming into the year, and we're monitoring prices and price expectations closely.”
On the U.S. tariff situation, she remarked that while these are not good for any industry, she believes that salmon has repeatedly proven to be resilient to geopolitical shocks.
“To sum it up, we’re moving in the right direction, but for Grieg Seafood, 2025 is a transition year, focused on cost control, capital discipline, and full execution of our transformation roadmap,” she said. “As a new management team, we're assessing all regions to see how we can reach full potential to create shareholder value, and we're focusing on financial stability, operational enhancements, and future improvements. So, while the past quarters have tested us, they've also clarified where our strength lies and where our focus must be placed.”
