The Faroe Islands Salmon Company is providing slightly weaker numbers than expected, but is seeing an improvement in the market in line with the normalization after the pandemic.
Bakkafrost generated an operating profit before adjustments of DKK 408 million in the second quarter, compared to DKK 182 million at the same time last year.
Up front, DKK 435 million was expected, according to figures from TDN Infront.
Overall, we are satisfied with the results for this quarter. Despite the fact that the salmon market is still somewhat hampered by the coronavirus pandemic, the market has been very strong this quarter, says Regen Jacobsen, CEO of Bacafrost. In the stock market announcement.
Going forward, the outlook for the salmon market looks bleak for the rest of 2021, as well as for the first half of 2022, he adds.
Maintains slaughter goals
During the quarter, the company harvested 17,561 tons in the Faroe Islands and 10,634 tons in Scotland, in line with an earlier update.
For the whole of 2021, the company still expects to harvest 66,000 tons in the Faroe Islands and 40,000 tons in Scotland.
The turnover rose to 1.62 billion DKK in the second quarter from 1.13 billion DKK at the same time last year.
The adjustment for the value of fish in the first quarter was 176 million, compared to 427 last year.
This brings the group to a profit after tax of DKK 428 million, down from NOK 472 million at the same time last year.
Normalization after corona
The Corona pandemic has weakened the salmon market since the first quarter of 2020. Backafrost reported that the market continued to improve during the second quarter of the year, and further improvements are expected in line with mass vaccination in key markets.
Bakkafrost sells salmon to Europe, the United States, East Asia and Russia.
The pandemic has also shifted from restaurants and hotels to retail.
“The market is still affected by these changes, but is gradually returning to normal,” Bakafrost wrote.
With a market capitalization close to NOK 44 billion, Bakkafrost is the fourth largest salmon company on the Oslo Stock Exchange.
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