RECORD REVENUE IN 2023. MAKING PROGRESS TOWARDS 2025 TARGETS
2023 marks the first year in Lerøy's history where revenue exceeds NOK 30 billion. Seafood's position among consumers remains strong.
We continue to vigorously work towards developing the most efficient and sustainable value chain for seafood. I am proud of the work our employees do, while acknowledging that the past year has been challenging," says CEO Henning Beltestad.
FOURTH QUARTER 2023 DEVELOPMENT
In the fourth quarter of 2023, Lerøy delivered an operating profit before biomass adjustments of NOK 765 million.
In Farming, we experienced challenges related to string jellyfish and lost feeding days in Lerøy Aurora and accelerated harvest in Lerøy Sjøtroll. In Wild Catch, earnings were approximately the same as the same period the year before. In the VAP S&D segment, there is positive development as previously communicated, as product prices has increased, reflecting the increased raw material costs, and we have gradually succeeded in operational improvements.
The board of Lerøy proposes a dividend of NOK 2.5 per share for 2023. The proposal will be addressed at the ordinary general meeting on May 28, 2024.
STRONG FOCUS ON BETTER FISH WELFARE
Lerøy is diligently working towards strategic goals for 2025. In 2024, we expect progress in our biological performance in Farming and movement towards our goal of 205,000 harvest volumes in Norway by 2025. Key measures to achieve this include improved smolt quality and the use of new technology.
We are still in the early stages. So far, we have had a good experience with the use of submerged cages, with zero lice treatments and high survival rates, and we are also well underway with the introduction of various types of shielding technology. Currently, the plan is for approximately one-third of our salmon to be shielded with new technology by the end of 2024," Beltestad continues.
In VAP S&D, we expect further improvements in results in 2024. We see clear signs of improved profitability, driven by better capacity utilization and good development in several of our key markets globally. The goal of an operational operating profit from this segment of NOK 1.25 billion is challenging but achievable," Beltestad continues.
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 into 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 LERØY SEAFOOD GROUP
Lerøy Seafood Group is a global seafood group headquartered in Bergen. The company's approximately 6,000 employees annually handle between 350,000 and 400,000 tons of seafood through the company's value chain, equivalent to about 5 million meals every day. The group has a vertically integrated value chain for redfish and whitefish, as well as significant third-party product activity.
The Group's values, "open, honest, responsible, and creative," are the basis for the Group's total activities, and efforts are made towards the goal of creating the world's most efficient and sustainable seafood value chain. The target for annual return on capital employed (ROCE) is 18%. The group has set ambitious sustainability goals, including a 46% reduction in greenhouse gas emissions by
2030.
To ensure food safety for the consumer, we actively work in all stages of the value chain. As a fully integrated seafood supplier, we have the opportunity to control and quality-assure our products throughout the entire value chain. This way, we can meet the seafood market's increasingly stringent requirements for traceability, food safety, product quality, cost-effectiveness, sustainability,
and continuous delivery.
