Q2 2024 Leroy Seafood Group ASA Earnings Call Transcript
Key Points
- Leroy Seafood Group ASA (LYSFF) reported a strong operational EBIT of NOK906 million for the quarter, driven by improved biological performance in farming operations.
- The company achieved a 24% increase in quarterly harvest volume, with significant improvements in harvest weights and survival rates across various segments.
- Leroy Aurora in Norway reported high survival rates and strong biological performance, positively impacting price achievement.
- The VAP Sales and Distribution segment showed continued positive development, with higher profits compared to the previous year, driven by operational improvements.
- The company maintains a strong balance sheet with a 50% equity share, indicating financial stability and investment-grade status.
- The Wild Catch segment faced a significant year-on-year reduction in earnings due to lower quotas, impacting profitability.
- There was a substantial decline in catch volumes, down 25% year-on-year, with a challenging outlook for the remainder of 2024 and 2025.
- The company experienced a decrease in margin per kilo, with price realization and costs both contributing to a NOK4 decline compared to the previous year.
- Feed costs have increased, impacting overall costs despite adjustments for inflation.
- The company faces challenges with new regulations that will allocate quotas from the trawling fleet to the coastal fleet, potentially affecting future operations.
Welcome to Leroy Seafood Group's second-quarter presentation 2024. My name is Henning Beltestad, CEO in Leroy Seafood Group. And with me today, I have Sjur Malm, CFO.
First of all, I will take you through the highlights in the quarter, then Sjur Malm will take you through the key financial highlights, and then I will come back again and talk about the outlook for the company and also the industry.
First of all, we start, as always, with our main goal is to create the world's most efficient and sustainable value chain for Seafood. We have invested through the last 20 years, going from sales and export company to be a fully integrated company on redfish and on whitefish all the way to our own brands in shops and products in (inaudible) and Distribution segment.
And we are proud that of what we have done. But also, we see a huge potential of improvements in the whole value chain. The quarter, we had an operational EBIT of NOK906 million. It's been a quarter with strong biological development from farming in
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