Grieg Seafood ASA has released its financial results for 2022, in which the group reported a record harvest volume of 84,697 tonnes and an operational EBIT of NOK 1,739 million (€158 million).
The company's Rogaland and Finnmark operations reached their highest ever harvest volume and operational EBIT, the company added.
Over the last years, the Norwegian seafood firm has reduced farming costs through operational improvement initiatives. However, during 2022, the industry experienced general cost inflation, particularly affecting feed prices.
In addition, the company predicts the biological events of 2022 will increase farming cost until the impacted fish are harvested.
Improvement Program
While the underlying biology is improving, the company is also launching an improvement program to review all aspects of its operations and identify areas where it can improve profitability and reduce cost, it said.
The global harvest of Atlantic salmon in 2023 is expected to increase by 2%, or 47,300 tonnes, to a total of 2.9 million tonnes. With limited supply growth, combined with continuing strong demand development, the company anticipates sustained strong market prices in 2023.
As a result of the proposed resource tax on farmed salmon in Norway, as well as ongoing political uncertainty, Grieg Seafood has put all growth investments, to the tune of approximately NOK 2.3 billion (€200 million) in Norway on hold.
The tax proposal is currently under review and the final version is expected to be adopted by the Norwegian Parliament before the summer.
Tax impact
Grieg Seafood will then assess how the tax will impact the company’s strategy and plans, and allocate investments to the farming regions with the biggest potential for sustainable and profitable development and growth.
"As a result of inflation and the events of last year, which impacted cost levels negatively, we are launching an improvement programme to review all aspects of our operations and identify areas where we can increase profitability across our business,” said Andreas Kvame, CEO of Grieg Seafood ASA.
©2023 European Supermarket Magazine – your source for the latest fresh produce news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.
