SalMar ASA: Initiation of Coverage- Is This Aquaculture Giant Poised for a Biomass-Fueled Profit Surge?

SalMar ASA reported its financial results for the first quarter of 2025, highlighting both operational challenges and continued efforts towards expansion and sustainability in the salmon farming industry. The company’s performance was impacted by a range of biological and market factors but also demonstrated strategic growth initiatives. On the operational front, SalMar faced difficulties primarily due to a late harvest, a high proportion of downgraded fish, and lower fish weights, particularly in Central Norway. These challenges led to increased costs and reduced earnings, contributing to a weaker than desired financial performance for the quarter. SalMar harvested a total of 42,700 tonnes, producing an operational EBIT of NOK 798 million with a margin of NOK 18.7 per kilo. Notably, Norwegian operations generated an EBIT of NOK 852 million at a somewhat higher margin of NOK 21.5 per kilo.