Norway-based salmon group Grieg Seafood increased its first quarter revenue slightly but earnings before interest, taxes, depreciation, and amortization. (EBITDA) and profit before tax declined compared to the same period last year, partly due to continuous biological challenges.

During the first quarter of 2023, Grieg Seafood posted revenue of NOK 1.5 billion (€128 million/$140 million), up 7 percent compared to the same period last year.

The group posted NOK 507 million (€43 million/$47 million) operational EBITDA and NOK 573 million profit before tax, corresponding to a decline of 8 percent and 53 percent respectively compared to the same period last year .

Also harvest volumes were down slightly.

The group harvested 15,357 metric tons during the period, down from 16,916 metric tons early last year, which amounted to an operational EBIT of NOK 25.1 (€2.1/$2.3) per kilo, corresponding to a decrease of 7 percent compared to the first quarter last year.

"We were still impacted by biological challenges in the beginning of the year, though this has improved throughout the quarter and is currently good
in Rogaland, British Colombia and Newfoundland," Grieg Seafood CEO Andreas Kvame said.

"Like in the previous quarter, Finnmark is still impacted by the Spiro parasite and mitigating measures have been taken to address the issues," Kvame said.

Inflation is particularly affecting feed prices, and the biological events of 2022 will increase farming cost until the impacted fish are harvested. The company has launched an improvement program to review its operations and identify areas for improved profitability.

Grieg Seafood guides for a harvest volume of 80,000 metric tons in 2023, down from previously guided 82,000 metric tons.

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