Norway's Lerøy Seafood Group has posted a 26% year-on-year increase in revenue in the first quarter of its financial year.
Operating EBIT stood at NOK 989 million (€85.5 million), up from NOK 889 million (€76.8 million) in the first quarter of 2022.
The global seafood corporation said its performance in the quarter was impacted by price inflation on seafood products, and a challenging situation in the farming segment in the second half of 2022, resulting in low average harvest weight, along with less than optimal harvest profile with respect to prices through the first quarter.
Weak Norwegian Krone
The chief executive of Lerøy Seafood Group, Henning Beltestad, said there is still strong demand, but prices have been impacted by a weak Norwegian krone.
Year to date, the seasonal pattern has mirrored 2022 with a low seasonal volume of salmon and trout at the start of the year, which is also affecting prices.
"The demand for seafood is strong, but it is also worth noting that the spot prices for salmon so far in the second quarter are significantly higher than this time last year in NOK, but lower in Euro," added Beltestad.
According to him, a resource rent proposal from the Norwegian government will be "decisive" for the industry.
"It is difficult to comprehend that the government is now substantially limiting the capital available for investments," he stated and added, "It is well documented in the consultation responses that the proposed tax is in no way investment neutral. If it is adopted, it will significantly weaken development in the industry."
Lerøy Seafood Group expects a slight increase in farming costs in the second quarter, but lower costs in the second half of 2023.
Read More: Norway Exports Seafood Worth €3.6bn In Q1 2023
© 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.