Global supplier AKVA aims to double turnover by 2030
The Norway-headquartered is holding its Capital Markets Day today, where it presents plans to increase revenue to NOK 7 billion in six years, and increase its operating profit margins.
AKVA group points out that production volumes in the global salmon farming industry have stagnated in the 2020s after decades of growth. The company believes that there is now a need for investments in technology and equipment to lay the foundation for new long-term growth. This, it believes, will provide increased momentum and better margins for both sea-based, land-based and digital operations in the years ahead.
"Our Nautilus concept for deep-water farming is an effective solution to the lice problem at sea. Our proven RAS technology can create growth in smolt, post-smolt and food fish farms on land. And looking ahead, our digital AI solutions will help drive the industry towards more intelligent and fully automated precision farming," said AKVA group chief executive Knut Nesse in a press release.
Will double turnover
AKVA group had revenues of NOK 3.5 billion (£257 million at today's exchange rate) in 2024 and expects a turnover of NOK 4bn in 2025. The company has set a goal to increase this to NOK 5bn by 2027, with an ambition to reach NOK 7bn by 2030. In that case, it would correspond to a doubling of revenues in six years.
Operating profit (EBIT) margin is also expected to improve, from 5% of turnover in 2024 to 6% in 2025. In the longer term, AKVA has a target of a 9% EBIT margin in 2027, and an ambition to exceed 10% in 2030.
Within the Sea-based segment, the company wants to increase revenue from NOK 2.8bn in 2024 to NOK 3.4bn in 2027. At the same time, it aims to raise the EBITDA (earnings before interest, tax, depreciation and amortisation) margin from 12% to 14%.
Land-based operations are a focus area, and the goal is to more than double revenues from NOK 0.6bn to 1.4bn by 2027. This should contribute to a margin improvement from 4% to 10%.
Significant investments
The digital segment also has growth ambitions, with a goal of increasing revenue from NOK 137m in 2024 to approximately NOK 250m in 2027. The EBITDA margin in this segment is expected to increase from 22% to 40%.
"We have made significant investments to strengthen the foundation over the past few years and this makes it possible to realise ambitious and profitable growth plans without additional large investment costs," said chief finanical officer Ronny Meinkøhn.
As part of the framework for capital allocation and financial planning, the board of AKVA has decided on a revised dividend policy that states that over time, AKVA intends to pay out between 40% and 50% of cash flow after investments to shareholders in the form of dividends, taking into account the business's capital needs and current market conditions.
