Akva Group increased profit despite a lower turnover in Q3
The fish farming supplier's revenue decreased by 14% in the third quarter but margins improved.
Published
This is shown in the quarterly report that the company presented today (Friday), reports Fish Farming Expert's Norwegian sister site, Kyst.no.
The company had a turnover of NOK 959 million (£76.1m) in the third quarter of 2026, a decrease of 14% compared to the same period last year.
Despite lower revenues, operating profit (EBIT) increased from NOK 89m to NOK 99m. EBITDA ended at NOK 170m, up 15% from the third quarter last year.
Order intake in the quarter was NOK 714m, while Akva's order book at the end of September was worth NOK 2.72 billion. This is an increase from NOK 2.36 billion at the same time last year.
Better profitability in sea-based operations
The sea-based business accounted for the majority of revenue, with NOK 666m in the third quarter. This is a decrease from NOK 770m the previous year.
At the same time, operating profit increased from NOK 70m to NOK 83m, and the operating margin rose from 9.1% to 12.5%.
Revenue in the Nordic region fell from NOK 545m to NOK 449m, while there were also smaller declines in the Americas and the Europe and Middle East region.
The marine operations order book increased significantly, from NOK 745m in the third quarter of last year to NOK 1.32bn this year.
Decline on land
For the land-based business, revenue fell from NOK 308m to 251m.
Operating profit ended at NOK 14m, compared to NOK 19m in the same quarter last year.
The order book was also smaller, dropping from NOK 1.44bn to NOK 1.19bn. Land-based operations thus account for 44% of the group's total order book.
AKVA's digital segment, on the other hand, saw growth. Revenue increased from NOK 34m to 42m, while operating profit ended at NOK 2m, compared to almost zero the previous year.
Closed systems are on average 20 times more expensive than deep farming. If deep farming actually solves 80% of the lice problem, then you don't go for a technology that is 20 times more expensive
High expectations for deep-farming operations
The company writes that it expects continued strong interest in concepts related to keeping fish at greater depths, which reduces problems with sea lice.
The company also maintains its financial ambitions of a turnover of at least NOK 5 billion and an operating margin of 9% in 2027.
Chief executive Knut Nesse has previously stated that he believes cost differences will have a major impact on what farmers actually choose.
"Remember that closed systems are on average 20 times more expensive than deep farming. If deep farming actually solves 80% of the lice problem, then you don't go for a technology that is 20 times more expensive."
The Yanmar acquisition is approaching
In October, it was announced that Japanese company Yanmar had entered into an agreement to make a recommended voluntary cash offer for all shares in Akva Group. The offer is NOK 161 per share.
The transaction is expected to be completed during the current quarter, subject to the receipt of necessary regulatory approvals.
The costs associated with the transaction will be charged to the result in Q4.
Akva Group states that the company's strategic priorities remain unchanged until the transaction is completed, and that operations will continue as normal.
