Record turnover in 2023. Progress towards targets for 2025.
RECORD TURNOVER IN 2023. PROGRESS TOWARDS 2025 OBJECTIVES
2023 marks the first year in Lerøy’s history where turnover exceeds NOK 30 billion. The position of seafood among consumers remains strong.
We continue to work vigorously to develop the most efficient and sustainable value chain for seafood. I am proud of the work accomplished by our employees, while recognizing that the past year has been difficult,” said said CEO Henning Beltestad.
EVOLUTION OF THE FOURTH QUARTER 2023
In the fourth quarter of 2023, Lerøy achieved an operating profit before biomass adjustments of NOK 765 million.
In agriculture, we experienced challenges related to threadfin jellyfish and lost feeding days in Lerøy Aurora and accelerated harvest in Lerøy Sjøtroll. At Wild Catch, profits were about the same as the same period the previous year. In the VAP S&D segment, there is a positive development, as noted earlier, as product prices have increased, reflecting the increase in raw material costs, and we have gradually managed to improve our operations.
Lerøy’s board of directors is proposing a dividend of NOK 2.5 per share for 2023. The proposal will be discussed at the ordinary general meeting on May 28, 2024.
A STRONG FOCUS ON BETTER FISH WELFARE
Lerøy is working diligently to achieve its strategic goals for 2025. In 2024, we expect progress in our organic performance in livestock farming and progress towards our target of 205,000 harvest volumes in Norway by 2025. Key measures for Achieving this includes improving smolt quality and using new technology.
We are still in the early stages. So far we have had good experience with the use of submerged cages, without lice treatment and with high survival rates, and we are also well on our way with the introduction of various types of protection technologies . Currently, it is expected that about a third of our salmon will be protected by new technology by the end of 2024,” Beltestad continues.
At VAP S&D, we expect further improvements in results in 2024. We are seeing clear signs of improving profitability, driven by better capacity utilization and good development in several of our key markets globally. The target of an operational operating profit of NOK 1.25 billion in this segment is ambitious but achievable,” continues Beltestad.
I would like to take this opportunity to thank all our employees for their significant efforts in 2023. We see great opportunities to further develop Lerøy’s business towards the most efficient and sustainable value chain for seafood” , concludes Henning Beltestad.
For inquiries, please contact CEO Henning Beltestad or CFO Sjur S. Malm.
ABOUT THE LERØY SEAFOODS GROUP
Lerøy Seafood Group is a global seafood group headquartered in Bergen. The company’s approximately 6,000 employees handle between 350,000 and 400,000 tonnes of seafood throughout the company’s value chain each year, which equates to approximately 5 million meals each day. The group has a vertically integrated value chain for redfish and whitefish, as well as a significant third-party products business.
The Group’s values of “open, honest, responsible and creative” form the basis of all of the Group’s activities, and efforts are made to achieve the goal of creating the most sustainable seafood value chain. efficient and most durable in the world. The annual return on capital employed (ROCE) target is 18%. The group has set ambitious sustainable development targets, including a 46% reduction in greenhouse gas emissions by
2030.
To guarantee consumer food safety, we actively work at all stages of the value chain. As a fully integrated seafood supplier, we have the ability to control and ensure the quality of our products throughout the value chain. We can thus meet the increasingly strict requirements of the seafood market in terms of traceability, food safety, product quality, profitability, sustainability,
and continuous delivery.
