Faroes growth lifts operating profit for Bakkafrost
Scotland in the red but had good biology
Faroes and Scotland salmon farmer Bakkafrost Group made an improved operating profit of DKK 544 million (£63.2m) in the first quarter of this year, but its Scottish operations reported an operating loss of DKK -28m (-£3.25m), down by DKK 99m from an operating profit of DKK 71m in Q1 2025.
Bakkafrost’s operational EBIT increased from DKK 505m in the same quarter last year, largely due to increased harvest volumes in the Faroes. Bakkafrost harvested 25,139 gutted weight tonnes in its home country in Q1, up from 18,914 gwt in Q1 2025. Harvest in Scotland was 6,198 gwt, similar to last year when 6,286 gwt were harvested in the same period.
Revenues in the Faroes amounted to DKK 1.671 billion (Q1, 2025: DKK 1.4bn) and operational EBIT was DKK 572m (435m).
Revenues in Scotland amounted to DKK 443m (DKK 496m).
Strong biological foundation
“Overall, we are satisfied with the results in this quarter. Bakkafrost entered 2026 with a strong biological and operational foundation, particularly in the Faroe Islands, where farming operations continued to deliver robust growth, record high harvested volumes in any first quarter, high harvest weights and low feed conversion ratios. Fish health remained strong and mortality was low,” said chief executive Regin Jacobsen.
The strong performance supported an exceptionally good cost development, with ex-cage costs in the Faroes down 13% year-on-year.
“Based on the strong biology, high biomass at sea and good growth in the Faroe Islands, we are increasing our 2026 harvest volume guidance from 92,000 tonnes to 97,000 tonnes. Consequently, we are also increasing the expected production of fish feed to 175,000 tonnes to support the higher biomass growth and harvest outlook,” said Jacobsen.
Marine operations in Scotland delivered stable biological performance, with improved survivability compared to Q1 2025.
Benefits next year
Jacobsen said that during 2026, the biomass at sea in Scotland will gradually transition towards large, high-quality smolt from the company’s hatchery and post-smolt facility at Applecross, which was officially opened by the Princess Royal last week.
“Benefits are expected to become increasingly visible from 2027 onwards through improved fish health, stronger growth and reduced biological risk,” said Jacobsen.
The average smolt weight from Applecross was 269 grams in the first quarter, up 16% from the same period last year.
At the same time, the company reported some technical challenges and water quality issues in the Scottish freshwater operation that resulted in incident-based costs of DKK 16m in the quarter.
Bakkafrost’s freshwater segment in the Faroes made an operational EBIT per kg transferred smolt of DKK 44.04 (DKK 42.11) in Q1. The less mature freshwater segment in Scotland made an operational EBIT per kg transferred smolt of DKK -121.41 (DKK 12.33).
Cost discipline
The farming segment in the Faroes made an operational EBIT per kg of DKK 15.35 (DKK 15.15), while the farming segment in Scotland made an operational EBIT per kg of DKK -10.10 (DKK 2.53).
“The operational focus in Scotland in Q1 2026 remained on biological control, cost discipline and strengthening the underlying farming platform,” Bakkafrost stated in its Q1 2026 report.
It added that the gradual transition towards biomass being based on large, high-quality smolt will lead to improved fish health, stronger growth rates supporting improved cost position, and reduced biological risk.
The average weight of transferred smolt from Applecross in Q1 was 269g, which is 16% higher than in Q1 2025. The average smolt weight for all Bakkafrost’s smolt release in Scotland in the quarter was 218g, which is 29% higher than in Q1 2025.
Bakkafrost Scotland expects to stock 10 million smolts with an average weight of 179g in 2026. This includes internally produced smolt as well as fish that have been externally sourced.
