Profit falls by over NOK 100 million
Salmonid farmer Lerøy's second-quarter result was weaker than last year, but lower costs and better biology give confidence in the harvest.
Published
Lerøy Seafood Group made an operating profit of NOK 574 million (£45.1m) in the second quarter of 2026. This is a decrease of NOK 106 million, or 15.6%, from the same quarter last year, reports Fish Farming Expert's Norwegian sister site, Kyst.no.
In the second quarter of 2025, the seafood group delivered an operational operating profit of NOK 680 million.
According to Lerøy, the decline is due, among other things, to lower harvesting volumes and weaker margins in Market Operations, compared to a historically strong second quarter last year.
"At the same time, we see good biological development and a falling cost level in Aquaculture, we deliver a strong cash flow, and we are increasing expectations for Wild Catch for the year," says chief executive Henning Beltestad.
Smaller fish harvested
The aquaculture segment delivered an operational operating profit of NOK 236m in the quarter, down from NOK 256m in the same period last year.
Lerøy harvested 44,747 tonnes of salmon and trout in the quarter, 8% less than the previous year.
At the same time, the company highlights developments in biology and cost levels as positive factors.
"We have very high survival and strong biology. The cost level in aquaculture has been significantly reduced from the first quarter of 2026. Into 2027, feed costs will increase, but the effect of the cost optimisation programme will significantly reduce the impact of this," says Beltestad.
Lerøy maintains its expectation of a total harvesting volume in Norway of 195,000 tonnes in 2026. However, the guidance has been adjusted between the regions.
Expectations for Lerøy Aurora have been increased following strong development in the north, while they have been reduced for its most southerly division, Lerøy Sjøtroll. According to the company, the latter is due to lower growth as a result of very low sea temperatures.
Including the group's 50% share of Scottish Sea Farms' volume, a total harvesting volume of around 217,000 tonnes is expected, according to the second quarter report.
Improvement from Q1
Market Operations, formerly VAP, Sales and Distribution, had an operating profit of NOK 269m. This is down from NOK 351m in Q2 2025.
The margin ended at 3.5%, compared to 2.4% in the first quarter of the year.
Lerøy explains the weaker earnings in the first half of the year with less favourable contract positions, lower volumes and a stronger Norwegian krone. For the second half of the year, the group expects a significant improvement in the segment's earnings.
Still cutting NOK 1 billion
Cash flow strengthened in the quarter. Operating cash flow ended at NOK 1.35 billion, up from NOK 1.03bn in the second quarter last year.
So far in 2026, Lerøy has had a free cash flow of NOK 1.7bn, compared to NOK 1.3bn at the same time in 2025.
At the same time, work continues on the group's NOK 1 billion cost cutting programme. At the end of Q2, NOK 402m in savings had been realised. A further NOK 521m in cuts has been identified and is being implemented.
Lerøy expects that the growth in the global supply of salmon and trout will slow significantly during the second half of the year, after several quarters of strong supply growth. At the same time, the group believes that demand will continue to grow in the most important markets.
"We enter the second half of the year with a strong biological status, positive cost development, good cash flow and a market that is gradually tightening. Together with the effects of the cost programme, this provides a good basis for further value creation," says Beltestad.
