Lerøy’s lower whitefish quotas and farming challenges take toll in Q3 2023

Disease challenges in its farming segment and lower quotas for its wild-catch operations had a negative impact on Lerøy Seafood Group’s earnings in the third quarter of this year.

Lerøy Seafood CEO Henning Beltestad confirmed that at the end of Q3 and beginning of Q4, the company has faced infectious salmon anemia (ISA) disease issues at some grow-out sites. These have resulted in lower production levels than expected and will affect the expected harvest volumes in 2023 and 2024. At the same time, this year’s fishing quotas have been lower than in 2022, and will be lower still in 2024, he said.

According to LSG’s Q3 2023 report, driven by strong and rising prices, partly because of the weak Norwegian kroner, its revenues for the period increased 8 percent year-on-year to a Q3 record of NOK 8 billion (USD 721 million, EUR 677.2 million), while its operating EBIT fell 24 percent to NOK 631 million (USD 56.9 million, EUR 53.4 million). That followed up on a record-breaking Q2 2023 for the company.

Presenting the Bergen, Norway-headquartered Q3 2023 results, Beltestad said that its farming operations were affected by one-time effects related to the early harvest of fish with detected infectious salmon anemia (ISA). Comprising the three Norwegian regions of Lerøy Aurora in Troms and Finnmark, Lerøy Midt in Nordmøre and Trøndelag, and Lerøy Sjøtroll located in Vestland, the segment reported operating earnings before interest and taxes (EBIT) of NOK 566 million (USD 51 million, EUR 47.9 million) in Q3 2023, compared with NOK 813 million (USD 73.3 million, EUR 68.8 million) a year previously.

Lerøy’s Q3 slaughter volumes of salmon and trout decreased 4 percent from 2022 to 53,876 gutted weight tonnage (GWT), while its EBIT per kilogram decreased from NOK 14.50 (USD 1.31, EUR 1.23) to NOK 10.50 (USD 0.95, EUR 0.89).

The company received an average spot price for salmon in the ... 

Photo courtesy of Lerøy Seafood