Grieg revises Q1 guidance and warns of CMS issues in Finnmark
Norway and Canada salmon farmer Grieg Seafood expects operational and financial performance for the first quarter of 2025 to be above previous guidance in Rogaland, and slightly below consensus in Finnmark, British Columbia, and Newfoundland, it said in a market update.
The deviation in Rogaland is primarily related to lower farming costs and higher harvest volumes. The site harvested in Q1 showed better-than-expected biological performance throughout the cycle. Operational performance in Finnmark was slightly better than the guidance provided in Q4, but below market consensus.
Grieg’s revised guidance is:
- Rogaland: Q1 farming costs 12.5% below previous guidance
- Finnmark: Q1 farming costs 4.5% below previous guidance, but above market consensus
- British Columbia: Q1 harvest volume was limited and came from broodfish, resulting in significantly higher farming cost/kg due to low volumes
- Newfoundland: Operational performance was in line with expectations, but results were negatively impacted by one-off costs of approximately NOK 48 million, related to demobilising a construction site
Cardiomyopathy
In the current quarter, Finnmark is experiencing challenges related to cardiomyopathy syndrome (CMS). Harvesting of the affected site began in late Q1 and continued throughout April and into this month. The impacted fish had an average harvest weight of 1.1 kg, resulting in elevated farming costs. The issue will have a limited impact on Q1 results. Updated guidance and a full assessment of future financial impact will be provided in the Q1 presentation.
The company has also completed staff reductions at its head office to improve the company’s profitability. As a result, additional one-off costs related to management changes and personnel restructuring of NOK 20 million has been recognised in Q1 2025.
Grieg Seafood has revised the timing for release of its Q1 2025 report. Full financial results will be published on May 27, instead of May 22.
