Bakkafrost Q2 profit hit by low salmon prices despite strong biology

Bakkafrost has reported a sharp decline in profitability for the second quarter of 2025, with its operating profit falling by 83 per cent as a significant increase in global salmon supply drove down prices. The Faroese salmon farmer’s results were hit hard by the market downturn, particularly in its Scottish operations which recorded a substantial loss, though the company highlighted exceptionally strong biological performance in the Faroe Islands.

The group delivered a total operational earnings before interest and tax (EBIT) of DKK65 million ($9.4 million) for the three months ending June 30, a steep drop from the DKK388 million recorded in the same quarter of 2024.

The company’s two main farming regions showed sharply contrasting results. The Faroe Islands division posted a respectable operational EBIT of DKK211 million, down from DKK275 million a year earlier. However, the Scottish division swung to an operational EBIT loss of DKK146 million, a stark reversal from a profit of DKK113 million in the prior-year period.

Chief Executive Regin Jacobsen commented, “We are not satisfied with the financial results in this quarter. A significant increase in global salmon supply has led to low salmon prices, impacting our earnings.” He noted that the company was very pleased with cost reductions and record-breaking biological performance in the Faroes, but acknowledged challenges in the Scottish freshwater operation, where the company has faced significant mortalities due to disease.

Despite the market headwinds, the company has increased its full-year harvest guidance by seven per cent, citing strong biological performance and volume growth. “Our strategic priorities remain unchanged,” Jacobsen stated, “to continue building biological resilience, strengthen operational performance across regions, and secure long-term value creation.”