Increased sales but lower margins for Norwegian salmon farmers

The preliminary edition of our yearly report “The salmon farming industry in Norway” is now available. Here are a few short excerpts.

Net sales for the sample of large companies (6+ licenses) increased by almost 6% in 2019 amid higher harvest volumes. The weighted average EBIT margin for these companies decreased by 6 percentage points compared to 2018, however with large variations ranging from –1% to 42%. The optimism in the industry led to a 62% surge in capital expenditures during 2019, resulting in a capex per kg harvest volume (hog) of NOK 7,9.

Average MAB utilisation

The two-year average MAB utilisation for the large companies increased in 2019 compared to the previous period. With 1.129 tonnes gutted weight, the two-year average harvest quantity per standard license increased by 6% compared to 2017-2018. Within the sample of large companies, the dispersion in MAB utilisation was large, ranging from 555 to 1.683 tonnes per standard license.

All-time high export value

Total export value of Atlantic salmon in 2019 amounted to NOK 72,5 billion, yet another all-time high annual notation for the Norwegian industry. The export value of trout from Norway in 2019 was close to NOK 3,7 billion, increasing by NOK 0,7 billion from 2018. With prices stable and declining, volume growth was the main cause for the value rise in 2019.

Do you wish to read more about the financial performance of the Norwegian salmon farming industry? The salmon farming industry in Norway 2020 provide a thorough analysis based on the 2019 financial accounts of the companies in the Norwegian salmon farming industry.

Read more and order here.