Bakkafrost P/f

Earnings Release • Jul 16, 2023

BAKKAFROST: Preliminary results and profit warning for Q2 2023

BAKKAFROST: Preliminary results and profit warning for Q2 2023

Preliminary results of the unaudited consolidated accounts for Q2 2023 indicate

a lower-than-expected operational Ebit for the Bakkafrost Group. The preliminary

results indicate an operational EBIT of around 353 mDKK for the Group. The main

drivers for the results are the extraordinarily low harvest volumes in the

Faroese farming segment and the reduced average weight of the harvested fish. In

addition, the Scottish farming segment has had lower harvest weights in Q2,

compared to the previous quarter, primarily caused by biology-led harvest at

some sites and early harvest at some sites to reduce biological risk ahead of

Q3.

In general, price achievements for fresh salmon have reduced during the quarter.

The low harvest volume in the Faroese farming segment harmed the cost of

harvested fish as fixed costs were less diluted on the harvest volume.

Also, exceptional mortality costs have been recorded in the quarter. In the

Faroes, this amounted to around 32mDKK and covered seawater as well as

freshwater, where accident-driven mortality events occurred during the start-up

of the new expansions of the Glyvradal and Norðtoftir hatcheries. In Scotland,

43mDKK has been expensed caused by accident-driven mortality during the start-up

of the Applecross 4 hatchery expansion and due to elevated mortality caused by

viral deceases at some marine farming sites, as previously disclosed in

Bakkafrost's 2023 Capital Markets Day presentation.

Bakkafrost has revised the 2023 full-year harvest volume for the Faroe Islands

to 63,000 tonnes. The 2023 full-year harvest volume for Scotland is unchanged at

30,000 tonnes HOG.

The full Q2 2023 report will be released on 22 August 2022 at 06:00 CET.

Contacts:

· Regin Jacobsen, CEO of P/F Bakkafrost: +298 23 50 01 (mobile)

· Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 23 50 60 (mobile)

This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.