Austevoll Seafood attributes Q2 profit plunge to falling salmon prices
Norway's Austevoll Seafood recently posted its financial results for the quarter ended June 30, 2025.
The group reported revenue of NOK10.065 billion (US$990 million) in Q2 2025, compared with NOK9.878 billion (US$970 million) in Q2 2024. Adjusted gross operating profit in Q2 2025 was NOK1.311 billion (US$130 million), down from NOK3.057 billion (US$300 million) in Q2 2024.
The decrease in earnings in Q2 2025 compared to Q2 2024 originates from the salmon operation and the pelagic operation in Peru. Despite higher slaughtered volume salmon and trout in the quarter, the falling prices for salmon and trout resulted in a significant reduction in earnings from this operation compared to same quarter in 2024.
In Peru, the substantial decrease in earnings in Q2 2025 compared with Q2 2024 can be attributed to higher cost combined with declining prices for fishmeal and fish oil during H1 2025.
Adjusted operating profit in Q2 2025 was NOK767 million (US$75.3 million), compared to NOK2.555 billion (US$250 million) in Q2 2024. Adjusted for gain from sale of shares, the adjusted operating was NOK1.29 billion (US$130 million) in Q2 2024.
The company's result before tax for Q2 2025 was NOK14 million (US$1.4 million), affected by a substantial negative biomass adjustment and low prices for salmon and trout (Q2 2024: NOK2.645 million/US$260 million).
The uncertainty surrounding tax estimates is considerably greater than usual due to the authorities imposing a resource rent tax on Norwegian aquaculture in May 2023, followed by the creation of a norm-price council. This has resulted in a significant time lag before companies have clarity on the authorities' specified realised prices for the period.
The result after tax in Q2 2025 was NOK106 million (US$10.4 million), compared with NOK2.172 billion (US$210 million) in Q2 2024.
Statement of financial position
The group’s statement of financial position as of June 30, 2025 showed total assets of NOK51.907 billion (US$5.1 billion), compared with NOK53.94 billion (US$5.3 billion) at the same date last year.
Some group companies have a functional currency different from the Norwegian krone. Fluctuations in foreign exchange rates will therefore cause periodic changes in the amounts recognised in the group’s statement of financial position, due to translation into Norwegian krone.
The group remains financially strong, with a book equity of NOK27.105 billion (US$2.66 billion) as of June 30, 2025, representing an equity ratio of 52 per cent. As of June 30, 2024, the book equity was NOK28.463 billion (US$2.79 billion) matching an equity ratio of 53 per cent.
Market and outlook
Following a positive biological development, Norwegian export volumes of salmon increased by 28 per cent in the quarter compared to the same period last year. The H1 growth was up 22 per cent year-over-year. Due to a lower share of downgrades, the actual supply growth of superior-grade fish from Norway was significantly higher.
Globally, the supply growth of salmon in H1 2025 is estimated to be around 12 per cent, and approximately 17 per cent for the quarter. Kontali Analyse estimates that the global supply in 2025 will increase by about eight per cent compared to 2024. This indicates a substantially lower year-over-year growth in H2 2025 compared to H1 2025.
Although the year-over-year harvest growth will slow, the usual seasonal trend indicates that H2 2025 harvests will surpass those of H1 2025. As a result, prices in the third quarter are currently lower than in Q2 2025.
