Bakkafrost profit improved in Q3 as Scotland losses lessened

Faroes and Scotland salmon farmer Bakkafrost Group made an operating profit of DKK 128 million (£14.3m) in the third quarter of this year, an improvement compared to operational EBIT of DKK 22m made in Q3 2025.

The difference was a combination of a higher operating profit in the Faroes, where EBIT increased by DKK 40m to DKK 267m, and reduced operating losses of DKK 140m (£16.6m)by Bakkafrost Scotland. In Q3 last year, the Scottish operations lost   DKK 205m (£22.9m).

Chief executive Regin Jacobsen said: “Bakkafrost continued to deliver strong biological performance in the Faroe Islands during the third quarter, with good growth and high biomass at sea. Harvest volumes for the first nine months increased by 24% compared to last year. While harvesting smaller farming sites contributed to higher unit costs in the quarter, the underlying biological and operational performance remains solid.”

Bakkafrost Faroes has been focused on increasing land-based production of large post-smolts for several years, and expects to have stocked 20.7 million smolts with an average weight of 440 grams this year.

In Scotland, where Bakkafrost has a smaller production capacity for large smolts, the company expects to have stocked 10 million smolts at an average weight of 179 grams during 2026.

A new large-post-smolt facility at Applecross in Scotland had teething troubles that delayed the production of the number and size of smolts that Bakkafrost’s marine farms required, but is now on track. As a result, Bakkafrost Scotland will no longer source smolts from external suppliers.

No more external smolts

“In Scotland, we are seeing encouraging signs from our large-smolt strategy, with these fish demonstrating superior growth and survivability. Nevertheless, results remain affected by low harvest volumes, smaller harvest weights and high unit costs,” explained Jacobsen.

“To reduce biological risk, we have decided to discontinue external smolt sourcing and focus on our own freshwater production. This is possible because the new facility at Applecross can now supply significantly larger volume of smolt. At the same time, the continued ramp-up of Applecross is driving rapid reductions in freshwater production costs as capacity utilisation increases. These developments are important steps towards a more predictable and efficient farming operation.”

Bakkafrost said strong biological performance continued in the Faroe Islands during Q3, with good growth and high biomass at sea. Harvest volume was 23,097 gutted weight tonnes (Q3 2025: 25,392 gwt).

In Scotland, Q3 2026 performance was affected by low harvest volumes, small average harvest weights and the underutilisation of fixed-cost infrastructure, and the harvest volume was 4,537 gwt (5,286 gwt).

“The average harvest weight was negatively affected by the biological challenges reported in the previous quarter at two farming sites, where a batch of externally supplied smolt was challenged,” Bakkafrost reported.

“The early harvesting of these sites continued into the third quarter and contributed to the lower average harvest weight. Towards the end of the quarter, exceptional mortality was primarily recorded at sites harvested out in September, however also with impact on Q4 2026.”

Improving overall

Bakkafrost said that at the same time, overall biological performance is improving with lower mortality than in the same quarter last year. Cohorts of larger smolts continue to show improved growth, survivability, and biological performance.

“The proportion of larger fish in the biomass is increasing, although legacy biomass and externally sourced smolt will continue to affect near-term results,” wrote Bakkafrost.

“The focus remains on strengthening biological control, reducing fallow costs, improving site utilisation and increasing harvest weights. The benefits of the larger-smolt strategy are expected to become increasingly visible from 2027 onwards.”

Bakkafrost expects to harvest 97,000 gwt in the Faroes this year, and 20,000 gwt in Scotland. In 2027, the Faroes harvest volume is expected to remain the same, and the volume in Scotland will increase to 28,000 gwt.