Lerøy Seafood Group ASA has published its Q2 2022 results corresponding to an operating profit, excluding settlement costs and before fair value adjustment, of NOK 923 million, up 58% from the same period of 2021. The main reason for this has been a strong demand for seafood, including a substantial increase in prices realized for the Group’s main products.
Contrary, the harvest volume was slightly lower than in the same period of 2021. Besides, inflationary pressure in the economy and the low harvest volume are affecting cost developments. Henning Beltestad CEO of Lerøy Seafood Group confirmed it will increase in the second half of the year.
“As usual, there will be a seasonal reduction in prices in the second half. But the underlying market is robust, and we expect earnings in the Farming segment to remain good,” he said. The total salmon and trout harvest volume for the full-year 2022 is estimated at 203,000 GWT.
In addition, the fish and seafood price volatility and cost inflation are affecting results in the VAP, Sales & Distribution segments. “It will take time for the recent cost inflation to be fully reflected in the value chain. The long-term picture is unchanged. We expect to see a gradual improvement through the second half of the year,” Beltestad confirmed.
On the other hand, wild catch segment results have improved compared with Q2 2021 and the company is hosting its first-ever Capital Markets Day on 22-23 September. “We look forward to providing a deep dive into our strategy and farming operation for investors, analysts, and other stakeholders. Also, demonstrating parts of our fantastic value chain in practice,” he finished.
In April, the Science Based Targets Initiative (SBTi) released a guide for seafood companies that promotes emissions reduction targets. Lerøy Seafood Group was involved, among other companies.