Bakkafrost warns of lower Q2 operating profits
Low prices and problems in Scotland hit salmon farmer's earnings
Faroes and Scotland salmon farmer Bakkafrost has warned of lower than expected operating profits for the second quarter of this year following weak prices in Q2 and challenges in Scotland.
“The preliminary results indicate an operational EBIT of around DKK 65 million (£7.5m) for the Group,” Bakkafrost said in a trading update.
Bakkafrost Scotland’s freshwater segment made an operating loss of DKK 72m, which included exceptional mortality and write-down cost of DKK 52m.
The Scottish operation’s farming segment made an operating loss of DKK 127m, which included exceptional mortality and write-down cost of DKK 38m.
Bakkafrost’s freshwater segment in the Faroes made operational EBIT of DKK 85m, and the farming segment had an operating profit of DKK 4m.
The group’s feed division, Havsbrún, made an operating profit of DKK 89m, services (wellboats, etc) made DKK 17m, and the sales & other segment made DKK 97m.
Challenges with diseases
“Weak salmon prices in the quarter harmed the overall results. In the Faroes, biological performance was strong in the quarter, while the Scottish farming and freshwater segments had some challenges with diseases, which continued into July. Consequently, exceptional mortality costs of DKK 93m have been booked in the Scottish farming and freshwater segments, including a write-down of mortality in July related to the same disease events,” stated Bakkafrost.
The company’s full Q2 2025 report will be released on August 26.
