Higher costs and low prices send Lerøy's Q3 earnings tumbling
High production costs and low market prices caused salmon and trout farmer Lerøy Seafood Group’s Q3 2025 operating profit to plunge by more than 96%, from NOK 412 million (£31.2m) in Q3 2024 to just NOK 15m.
Lerøy’s Farming segment made an operating loss of NOK -306m, although the low prices benefited the company’s value-added processing, sales and distribution (VAPS&D) segment, which made a record-high operating profit of NOK 410m.
The group’s wild catch segment made operational EBIT of NOK 3m.
Heading in right direction
“The spot price for salmon in the third quarter was NOK 8 per kg lower than in the same period last year,” said chief executive Henning Beltestad in a press release.
“As previously communicated, cost per kg is higher than in the previous quarter, driven by high sea temperatures and significant sea lice pressure. This has resulted in a weak quarter for Farming, but viewed over a longer period, we are heading in the right direction. The measures we have implemented are showing clear improvements.”
Beltestad said the VAPS&D segment’s record figure means the 12-month rolling operational EBIT is in line with a target of NOK 1,250 million announced in 2022.
“This segment continues its strong development. We see high demand for our value chain and strong growth in Asia, where we are now building markets,” said the CEO.
“This has been a mixed quarter for us, but from a long-term perspective, we see positive development,” added Beltestad. “We expect cost per kg in Farming to be lower in 2026 than in 2025. We also expect a more balanced salmon market in 2026, following the stabilisation of the record-high supply growth in 2025.”
195,000 gwt in Norway
Lerøy – which is one of the world’s top five Atlantic salmon farmers by volume – said the expected harvest volume for its Norwegian operations in 2025 remains unchanged at 195,000 gutted weight tonnes, with the same expected for 2026.
The company also owns a half share of Scottish Sea Farms (SSF), which is expected to harvest 33,500 gwt this year and 45,000 gwt next year.
“Including our share of Scottish Sea Farms, total volume is expected to reach 217,500 gwt in 2026, compared with 211,800 gwt in 2025,” wrote Lerøy.
