View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
November 14, 2016

Leroy Seafood books “record” Q3 earnings

Lerøy Seafood, the Norway-based seafood processor, has reported "record" third-quarter sales and profits.

By Dean Best

Lerøy Seafood, the Norway-based seafood processor, has reported “record” third-quarter sales and profits.

The company posted profit of NOK370.1m (US$43.8m), a rise of 62.1% on the third quarter of 2015. It generated an operating profit before fair value adjustment of biomass of NOK481m for the third quarter, a jump of over 90% compared to the corresponding period a year earlier.

The business booked third-quarter revenue of NOK4.27bn, up 29.5% on the same period in 2015.

“We are delighted with such a great result. It has not been an easy quarter. We have experienced a number of biological challenges and recorded lower average weights than expected and higher costs than normal,” CEO Henning Beltestad said.

“With a positive market, the group chose to harvest a substantial volume of fish throughout Q2 2016, entering the third quarter with 10% less biomass than in the same period in 2015. As a result, the group has had much more flexibility in terms of the timing of release from stock throughout the quarter. Based on the group’s market analyses, a somewhat limited volume has been harvested in the quarter, and the group has focused on accumulating biomass. This strategy to harvest a lower volume in the quarter, combined with the higher contract share in the quarter, has resulted in lower prices realised. The group expects higher harvested volumes, prices realised to improve significantly, and lower release from stock costs in the present quarter.”

In the third quarter, Lerøy Seafood became the majority shareholder in two fellow Norwegian seafood businesses, Havfisk and Norway Seafoods Group. Both companies were consolidated in Lerøy Seafood from 1 September. Lerøy Seafood said they had “made a positive contribution” to the group’s operating profit before biomass adjustment of NOK12.6m.

Lerøy Seafood has seen revenues and profits grow in the first nine months of the year. Profit stood at NOK1.44bn, up from NOK354.3m in the first nine months of 2015. Operating profit before fair value adjustment of biomass was NOK1.83bn, against NOK1.03bn a year earlier. Revenue stood at NOK12.34bn, up from NOK9.89bn in the first nine months of 2015.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food