The results reflect a persistently weak Norwegian krone environmental and biological challenges

SalMar Navigates Challenges, Maintains Focus on Sustainable Growth

SalMar, one of the world's leading salmon producers, released its 2024 annual report, detailing a year of operational challenges and strategic advancements.

Operational Challenges and Responses

The company faced significant biological challenges in 2024, notably from string jellyfish and sea lice, which impacted fish welfare and led to early harvesting and reduced production. Despite these headwinds, SalMar emphasized the strength of its value chain and the resilience of its employees.

Financial Performance

SalMar's gross operating revenues in 2024 were NOK 26.4 billion (approximately USD 2.4 billion), compared to NOK 28.2 billion the previous year. Operational EBIT was NOK 5.4 billion (approximately USD 490 million), down from NOK 8 billion in 2023. The company cited these results as reflective of strong operations amidst biological challenges and a weak Norwegian krone. SalMar achieved synergy targets from mergers, with NOK 844 million (approximately USD 76 million) in cost reductions in 2024 and identified an additional NOK 1.2 billion (approximately USD 109 million) in potential savings

Strategic Focus and Future Outlook

Looking ahead, SalMar remains committed to its ambition of being the world's best aquaculture company, with a focus on production excellence, cost efficiency, and animal welfare. The company is targeting increased production growth in Norway, Iceland, and Scotland, estimating a 17% increase in production from 2024 to 2025. SalMar also announced further potential growth of 26% by 2028, with a forecast of 370,000 tons of salmon.

Sustainability and Innovation

SalMar highlighted its commitment to sustainability, noting recognition as one of the world's most sustainable protein producers. The company is focused on cost programs to enhance competitiveness and investments in technology and infrastructure to minimize environmental impact and improve fish health. Investments in 2024 prioritized marine phase technologies, including preventive solutions for lice management.

Offshore Aquaculture

SalMar continues to pursue offshore aquaculture, with positive results from its semi-offshore operations. However, further development is currently on hold due to regulatory uncertainty.

Industry and Economic Factors

The report also addressed broader industry challenges, including geopolitical uncertainty and national politics, such as the introduction of a resource rent tax on aquaculture in Norway. SalMar anticipates continued strong demand and price achievement for salmon, supported by the FAO's emphasis on increasing sustainable seafood production.

Important Note on Currency Conversion:

The USD conversions provided are approximate. To calculate these, I've used the exchange rate information from the report, which states the NOK weakened by 12% against the USD during 2024. It's important to remember that currency rates fluctuate, and using a single annual average for conversion provides an estimate.

Please find attached the 2024 integrated Annual report, including sustainability reporting in accordance with CSRD, for SalMar ASA.

editorial@seafood.media
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Address:	Industriveien 51,
City:	Kverva
State/ZIP:	(NO-7266)
Country:	Norway
Phone:	+47 7244 7900
Fax:	+47 7244 7901
E-Mail:	Salmar@salmar.no
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