Scotland losses dragged down Bakkafrost Q3 profits
Salmon farmer Bakkafrost’s third quarter operating profit plunged by 87% this year due to weak market prices and increased losses at Bakkafrost Scotland.
The Faroese company’s operational EBIT fell from DKK 173 million (£20.4m) in Q3 2024 to DKK 22m (£2.6m).
Bakkafrost harvested 25,392 gutted weight tonnes (Q3 2024: 21,618 gwt) in the Faroes during the quarter, and 5,286 gwt (5,411 gwt) in Scotland.
The company made an operating EBIT of DKK 8.93 (DKK 14.35) per kilo in the Faroes, and DKK -38.72 (DKK -25.45) per kilo in Scotland.
The total operating loss for Bakkafrost Scotland increased from DKK -138m in Q3 last year to DKK -205m, partly due to a disease outbreak and subsequent high mortality at the company’s Portree and Portree Outer sites off the coast of Skye.
Bakkafrost reported mortality of 40.1% at its Portree site in September, and mortality of 27.8% at Portree Outer, due to gill related health issues and Pasteurella bacterial disease. The outbreak doubled incident-based costs for Bakkafrost Scotland’s farming segment doubled from DKK 34m in Q3 2024 to DKK 64m (£8m).
Strong biology in Faroes
“We are not satisfied with the financial results in this quarter, which were impacted by weak market prices and continued high global supply,” said chief executive Regin Jacobsen.
“However, we are very pleased with the exceptionally strong biological performance in the Faroe Islands. Our farming operations delivered record survival, strong growth, and the best biological results ever achieved in Bakkafrost’s history. Importantly, farming costs in the Faroe Islands continue to decline – down 12% year-on-year in Q2 and down a further 14% in Q3 – reflecting the impact of excellent biology, efficient farming, and disciplined operations.
Progress at hatchery
“In Scotland, performance was stable at most farming sites in the early part of the quarter but deteriorated following a disease outbreak at Portree, which had a notable impact on results. At the same time, the Applecross hatchery has made solid progress under its new management team, with operations stabilising and supporting the continued ramp-up of large, high-quality smolt production.
“Looking ahead, we expect the market situation to gradually improve as global supply growth slows and demand for high-quality salmon remains firm. This should support higher price levels through the winter and into 2026.
“Despite financial headwinds this quarter, the strong biological foundation across the Group positions Bakkafrost well for the future. Our priorities remain unchanged – to strengthen biological control, maintain cost discipline, and deliver sustainable long-term value through operational excellence.”
