Faroe Islands-based seafood company the Bakkafrost Group posted a total operating profit of DKK22 million (US$3.4 million) in the third quarter of 2025.
Bakkafrost's Faroe Islands operations posted DKK1.405 billion (US$220 million) in revenues and DKK227 million (US$35.1 million) in operating profit during Q3 2025. As for the group's operations in Scotland during the same period, revenues reached DKK282 million (US$43.6 million) while an operating loss of DKK205 million (US$31.7 million) was incurred.
Bakkafrost CEO Regin Jacobsen said that the company's Q3 2025 results, "were impacted by weak market prices and continued high global supply," though Bakkafrost was pleased with the strong biological performance in the Faroe Islands.
"Our farming operations delivered record survival, strong growth, and the best biological results ever achieved in Bakkafrost’s history," said Jacobsen. "Importantly, farming costs in the Faroe Islands continue to decline – down 12 per cent year-on-year in Q2 and down a further 14 per cent in Q3 – reflecting the impact of excellent biology, efficient farming, and disciplined operations."
In Scotland, performance was stable at most farming sites in the early part of the quarter but deteriorated following a disease outbreak at Portree, which had a notable impact on results.
"At the same time, the Applecross hatchery has made solid progress under its new management team, with operations stabilising and supporting the continued ramp-up of large, high-quality smolt production," added Jacobsen.
"Looking ahead, we expect the market situation to gradually improve as global supply growth slows and demand for high-quality salmon remains firm. This should support higher price levels through the winter and into 2026."
The supply of salmon increased 11.9 per cent in Q3 2025 compared to Q3 2024, including inventory movements. Bakkafrost said that without inventory movements, the supply increase was 12.2 per cent, according to the latest estimate from Kontali Analyse.
Salmon reference prices (in NOK) for 4kg to 5kg superior salmon were 13.1 per cent lower this quarter compared to Q3 2024. The price reduction was driven by substantial increase in supply from several regions, most dominantly from Norway but also from Chile.
Bakkafrost expects that in Q4 2025, the global supply will be on the same level as in Q4 2024, excluding inventory movements. In H2 2025, the global supply is expected to grow around six per cent, compared to Q3 2024.
For the full year 2025, the global supply is expected grow around nine per cent, excluding inventory movements, and in H1 2026 the global supply is expected to on the same level as H1 2025.