Release Date: November 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kaldvik AS (OSL:KLDVK, Financial) reported an operational EBIT of EUR 2.1 million for Q3 2024, indicating strong operational performance.
- The company achieved a superior share of 93% in its harvest, reflecting high-quality production.
- Kaldvik AS successfully released 4 million smolts by the end of Q3, with plans to release a total of 6.2 million in 2024, showing growth in production capacity.
- The company reported a record high biomass of 22,500 tons at the end of the quarter, demonstrating robust biological status.
- Kaldvik AS received ASC certification in Q3, which is expected to enhance market capitalization and meet customer demand for certified products.
Negative Points
- The average price achievement decreased from EUR 7.3 per kilo in Q2 to EUR 6.2 per kilo in Q3, impacting revenue.
- Harvest volume was 700 tons below guidance, indicating challenges in meeting production targets.
- The company lowered its 2024 harvest guidance to 15,000 tons due to lower capacity in the value chain and delays in wellboat capacity.
- Kaldvik AS faced setbacks in 2022 with the detection of ISA, affecting harvest volumes in subsequent years.
- Net interest-bearing debt increased by EUR 17 million during the quarter, reflecting higher financial leverage.
Q & A Highlights
Q: Can you provide more details on the operational EBIT and the factors influencing it this quarter?
A: The operational EBIT for Q3 was EUR 2.1 million. This was achieved despite low prices, thanks to a strong biological status with 22,500 tons of biomass in the sea. The group EBIT was EUR 0.55 per kilo, which we consider satisfactory given the challenging market conditions. - Rori Oen, CEO
Q: What are the reasons for the lowered guidance for 2024, and what are the expectations for 2025?
A: We lowered the 2024 guidance to 15,000 tons due to lower capacity in our value chain and delays in extra wellboat capacity. For 2025, we expect to harvest 25,000 tons. This adjustment is part of our strategy to achieve higher harvesting weights and capitalize on historically higher prices. - Rori Oen, CEO
Q: How has the change in reporting currency to EUR impacted the financial statements?
A: Changing the reporting currency to EUR aligns with our functional currency and reduces translation risk. Most of our revenues and costs are in EUR, and this change provides a more accurate financial representation. All comparative figures have been translated using the year-end 2023 conversion ratio. - Robert Robertson, CFO
Q: Can you elaborate on the company's financial health and debt situation?
A: Our financial health remains robust with a 57% equity ratio. Net interest-bearing debt increased by EUR 17 million during the quarter, primarily due to investments in working capital and CapEx. We are fully financed through 2025 with a total bank facility of EUR 180 million. - Robert Robertson, CFO
Q: What are the company's growth ambitions and plans for achieving them?
A: We aim to achieve a sustainable production of over 30,000 tons of salmon. We have identified three projects to exceed this milestone, including producing larger smolts and optimizing production areas. We are also exploring the use of sterile licenses to reduce operational risks. - Rori Oen, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
