Bakkafrost P/f

Earnings Release • Nov 4, 2025

Record biology in the Faroes drives lower costs - a strong foundation for sustainable growth

Record biology in the Faroes drives lower costs - a strong foundation for sustainable growth

The Bakkafrost Group delivered a total operational EBIT of DKK 22 million (DKK

173 million) in Q3 2025.

(Figures in parenthesis refer to the same period last year unless otherwise

specified)

The performance in Q3 2025 per region was as follows:

· Faroe Islands    Revenues of DKK 1,405 million (1,420 million)

Operational EBIT of DKK 227 million (310 million)

· Scotland            Revenues of DKK 282 million (317 million)

Operational EBIT of DKK -205 million (-138 million)

Commenting on the result, CEO Regin Jacobsen said:

"We are not satisfied with the financial results in this quarter, which were

impacted by weak market prices and continued high global supply.

However, we are very pleased with the exceptionally strong biological

performance in the Faroe Islands. Our farming operations delivered record

survival, strong growth, and the best biological results ever achieved in

Bakkafrost's history. Importantly, farming costs in the Faroe Islands continue

to decline - down 12% year-on-year in Q2 and down a further 14% in Q3 -

reflecting the impact of excellent biology, efficient farming, and disciplined

operations.

In Scotland, performance was stable at most farming sites in the early part of

the quarter but deteriorated following a disease outbreak at Portree, which had

a notable impact on results. At the same time, the Applecross hatchery has made

solid progress under its new management team, with operations stabilising and

supporting the continued ramp-up of large, high-quality smolt production.

Looking ahead, we expect the market situation to gradually improve as global

supply growth slows and demand for high-quality salmon remains firm. This should

support higher price levels through the winter and into 2026.

Despite financial headwinds this quarter, the strong biological foundation

across the Group positions Bakkafrost well for the future. Our priorities remain

unchanged - to strengthen biological control, maintain cost discipline, and

deliver sustainable long-term value through operational excellence."

During Q3 2025, the FOF segment sourced 39,940 tonnes (40,134 tonnes) of raw

material. The Operational EBIT margin was 12% (20%), and fish feed sales

amounted to 49,087 tonnes (41,513 tonnes).

For the first nine months of 2025, the FOF segment's operational EBIT margin was

13% (20%). During the first nine months of 2025, Havsbrún sourced 309,393 tonnes

(267,583 tonnes) of raw material.

In Q3 2025, the Freshwater segments in the Faroe Islands and Scotland

transferred a total of 8.4 million (6.8 million) smolts combined:

· Freshwater FO:        4.8 million (4.9 million),

· Freshwater SCT:     3.6 million (1.9 million).

For the first nine months of 2025, the freshwater segments have released a total

of 18.5 million (16.0 million) smolts:

· Freshwater FO:     13.4 million  (11.0 million),

· Freshwater SCT:     5.1 million    (5.0 million).

In Q3 2025, the Freshwater FO segment made an operational EBIT per kg

transferred smolt of DKK 40.71 (DKK 40.67), corresponding to NOK 64.34 (NOK

64.11). The Freshwater SCT segment made an operational EBIT per kg transferred

smolt of DKK -66.88 (DKK -34.82), corresponding to NOK -105.70 (NOK -54.89). In

Q3 2025, the Freshwater SCT segment had incident-based costs of DKK 25 million

(DKK 0 million).

The Farming segments achieved lower prices in Q3 2025 than in Q3 2024. The

Farming segments had higher volumes in Q3 2025 compared to Q3 2024. In Q3 2025,

the Farming SCT segment had incident-based costs of DKK 68 million (DKK 34

million).

The total combined harvest in Q3 2025 of the farming segments in the Faroe

Islands and Scotland was 30,678 tonnes gutted weight (27,029 tgw):

· Farming FO:      25,392 tgw    (21,618 tgw),

· Farming SCT:      5,286 tgw       (5,411 tgw).

For the first nine months of 2025, the farming segments harvested a total of

78,932 tonnes gutted weight (70,178):

· Farming FO:     60,326 tgw     (46,138 tgw),

· Farming SCT:   18,606 tgw     (24,040 tgw).

In Q3 2025, the Farming FO segment made an operational EBIT per kg of DKK -1.13

(DKK -1.31), corresponding to NOK -1.78 (NOK -2.07). The Farming SCT segment

made an operational EBIT per kg of DKK -36.09 (DKK -33.14), corresponding to NOK

-57.04 (NOK -52.25).

The Services segment made an operational EBIT per kg of DKK 1.25 (DKK 0.70),

corresponding to NOK 1.97 (NOK 1.11). The operational EBIT margin for the

segment was 15% (8%).

The Sales & Other segment had a revenue of DKK 2,462 million (2,488 million) and

an operational EBIT margin of 3% (6%). The operational EBIT per kg was DKK 2.37

(DKK 5.48), corresponding to NOK 3.75 (NOK 8.64).

The performance related to the Faroe Islands and Scotland as a region can be

found in the Appendix.

The long-term goal of the Board of Directors is that 30-50% of earnings per

share shall be paid out as a dividend. Bakkafrost's financial position is

strong, with a solid balance sheet, a competitive operation, and available

credit facilities.

OUTLOOK AND OPERATIONAL PERFORMANCE

Market

Substantially increased supply in Q3 2025

The supply of salmon increased 11.9% in Q3 2025 compared to Q3 2024, incl.

inventory movements. Without inventory movements, the supply increase was 12.2%,

according to the latest estimate from Kontali Analyse.

Lower salmon prices in Q3 2025

Salmon reference prices (in NOK) for 4-5kg superior salmon were 13.1% lower this

quarter compared to Q3 2024. The price reduction was driven by substantial

increase in supply from several regions, most dominantly from Norway but also

from Chile.

No growth in Q4 2025

In Q4 2025, the global supply is expected to be on the same level as in Q4 2024,

excluding inventory movements. In H2 2025, the global supply is expected grow

around 6%, compared to Q3 2024. For the full year 2025, the global supply is

expected grow around 9%, excluding inventory movements, and in H1 2026 the

global supply is expected to on the same level as H1 2025.

Bakkafrost has a strong focus on ensuring a well-balanced flow to the different

markets to increase diversification and mitigate market risk. Bakkafrost

operates in the main salmon markets, Europe, the USA, and the Far East. Since

the beginning of the war in Ukraine, Bakkafrost has stopped all trading with

Russia.

Operations

Farming Faroe Islands

The Faroese farming operation continues on a very strong trajectory, underpinned

by exceptional biological performance. In Q3 2025, biology reached one of the

best positions ever recorded, supported by the consistent delivery of large,

high-quality smolt. The strong smolt quality is one of the drivers for the

achieved growth rates, record-high feeding volumes, and exceptionally low

mortality across sites. Sea lice levels remain well controlled through the

continued success of the dual-freshwater treatment strategy. The overall

biological performance has also translated into further improvements in the

quality of the harvested fish, which continues to set new benchmarks. All these

biological achievements - very strong growth, robust fish health, and high smolt

quality - combined with increased harvest volumes, shorter cycle times of

farming sites and lower smolt and feed costs, have driven further reductions in

farming costs.

Freshwater Faroe Islands

The Faroese freshwater operation continues its strong development, driven by

consistent improvements in smolt quality, robustness, and production efficiency.

Output of large, high-quality smolt remains on an upward trend, supporting

sustainable volume growth and long-term biological strength across the value

chain. The enhanced robustness of smolt is reflected in exceptionally low

accumulated mortality during the first 90 days post transfer - among the lowest

levels ever recorded. This confirms the effectiveness of Bakkafrost's large

-smolt strategy and the continued strengthening of biological performance.

Capacity utilisation continues to increase, supporting higher production volumes

and further cost efficiencies. The average weight of transferred smolt in Q3

2025 was 427g, which is 1% higher than in Q3 2024.

Current hatchery capacity enables annual production of 9,000 tonnes, equivalent

to about 18 million smolt of 500g. The new hatchery in Skálavík remains on

schedule for completion in late 2026, which will raise total capacity to

approximately 24.4 million smolt. Operations are expected to commence in Q2

Farming Scotland

The overall biological performance in the Scotland was good during Q3 2025, with

low mortality and good growth at most marine sites through July and August.

However, in September, conditions changed significantly following a disease

outbreak at the Portree farming site caused by Pasteurella bacteria. This

resulted in a sharp increase in exceptional mortality at the site, and some

harvests were advanced to mitigate further biological risks. Despite this

incident, the overall performance across the Scottish operation remained stable.

Bakkafrost maintains its 2025 harvest guidance of 22,000  tonnes, supported by

strong results from other farming areas. However, the increased mortality at

Portree is expected to have a negative impact on Scottish harvest volumes in

2026. During 2025 and into 2026, the biomass at sea will gradually change

character, transitioning to be based on large and high-quality smolt. This

strategic shift is expected to enhance overall fish health and growth rates,

leading to a more robust and sustainable aquaculture environment.

Freshwater Scotland

The Scottish freshwater operation continues its ramp-up, with Applecross firmly

established as the core of Bakkafrost's large-smolt strategy in Scotland, having

the capacity to produce 3,500 tonnes of high-quality large smolt. The smolt

affected by the furunculosis incident in Q2 are now out of Applecross, and

production has since normalised with stable and improving biological

performance. Under the leadership of the Faroese Group Freshwater management

team, the production plan for Applecross has been revised to enhance utilisation

and biological efficiency. In contrast to the previously announced 200g smolt,

Applecross will also produce larger smolt. Hence, the individual batches will be

ranging from 200g to 400g. This adjustment allows for greater flexibility in

production planning, better utilisation of capacity, and improved biological

outcomes. Applecross has also transitioned to operate as a stand-alone facility,

no longer receiving inputs from external hatcheries. This marks a significant

step in improving biosecurity and ensuring consistent smolt quality.

Services

The smolt transfer system from Applecross has undergone a major upgrade, with

the FSV Bakkanes rebuilt to handle smolt transfers, now operating similarly to

its highly successful rebuild of the sister vessel Martin in the Faroe Islands.

The upgraded system represents a major step forward in ensuring safe and

efficient smolt transfers, reducing stress and mortality, and strengthening

operational reliability across the Scottish farming sites. Together, these

initiatives represent a significant advancement in the Scottish freshwater

platform, ensuring it supports a robust, efficient, and sustainable farming

operation going forward.

In Q3 2025, the average weight of transferred smolt from Applecross in Scotland

was 229, which is 161% higher than in Q3 2024. The average smolt weight for all

Bakkafrost's smolt release in Scotland in the quarter was 155g, which is 80%

higher than in Q3 2024.

Smolt transfer

Bakkafrost's expected smolt transfer in 2026 in the Faroe Islands is around 20.0

million smolts with an average weight of around 440g. In Scotland, the smolt

transfer in 2026 is expected to be around 10.0 million smolt with an average

weight of 179g. This includes internally produced smolt as well as externally

sourced. The number and average weight of smolts transferred are key elements of

predicting Bakkafrost's future production.

Million smolt transferred '26e '25 '24 '23 '22 '21

FO 20.0 18.5 17.1 14.2 14.4 14.4

SCT 10.0 7.0 6.0 9.0 11.0 11.1

Avg. weight (g)

FO 440 430 410 396 345 376

SCT 179 153 109 117 107 95

Bakkafrost expects to harvest a total of around 104,000 tonnes gutted weight in

2025. 82,000 tonnes are expected to be harvested in the Faroe Island and 22,000

tonnes in Scotland.

In 2026, Bakkafrost expects to harvest around 92,000 tonnes gutted weight in the

Faroe Islands and around 20,000 tonnes in Scotland, giving at total of around

112,000 tonnes gutted weight. The quarterly harvest profile is outlined in in

the table below. Biological, environmental and market conditions can affect the

expected harvest profile.

Expected harvest profile in 2026 as a % of total harvest pr. region:

Region Q1 Q2 Q3 Q4

FO 24% 24% 25% 28%

SCT 30% 14% 18% 38%

The estimates for harvest volumes and smolt transfers in both geographies are

dependent on biological development.

Sales & VAP (Value added products)

Bakkafrost's highly flexible value chain includes state-of-the-art VAP

processing capacity, which enables the company to adapt effectively to rapidly

changing market situations.

As a result of changes in the Faroese revenue tax, Bakkafrost has adjusted the

strategy for contracted VAP (Value-Added Products) to reduce contract exposure.

For 2026, Bakkafrost intends to sign contracts covering around 15-20% of the

expected harvest volumes in the Faroe Islands and Scotland combined.

FOF (Fishmeal, oil and feed)

The outlook of fishmeal and fish oil production is dependent on the availability

of raw materials.

The ICES 2026 recommendation for blue whiting is 851 thousand tonnes, which

represents a 41.2% decrease from the recommendation for 2025.

In 2026 Bakkafrost expects lower production volumes of fishmeal and fish oil as

in 2025.

Bakkafrost expects the feed production at Havsbrún to be around 155,000 tonnes

in 2026. Close to all of this will be sold internally to Bakkafrost's Faroese

and Scottish Farming segments.

Investments

On the Capital Markets Day on 17-18 June 2025, Bakkafrost announced a 5.0bn DKK

investment plan for 2026-2030. The main purpose is to improve efficiency, reduce

biological risk and enable continued sustainable growth in the Faroe Islands and

Scotland.

The investments in the Faroe Islands will increase the annual smolt production

capacity to 24.4 million smolt of 500g. The feed production capacity and

flexibility are also increased to further improve R&D capabilities and meet the

growing demand for feed as harvest volumes increase in the Faroe Islands and

Scotland. Also, investments in new farming sites and new farming technology are

included, as well as investments to improve harvest capacity and flexibility

with Live Fish Holding Tanks.

In Scotland, planned investments include site expansions and optimisation as

well as building a new harvest and processing facility to accommodate the

growing harvest volume.

As a shared service to the Group, the investment plan includes building 2 new

dual-freshwater treatment vessels in the FSV segment.

Incorporated into the investment plan is also 245mDKK earmarked to energy

transition, spread across the value chain.

With the investment plan, Bakkafrost expects to sustainably grow the total

annual harvest volumes to 162,000 tonnes in 2030.

Since the announcement of the 2026-2030 investment plan on the CMD in 2025,

Bakkafrost has decided to let some of the investments planned for 2025 rollover

into 2026 due to the weak market outlook for 2025. Consequently, the timing of

other investments in the announced 2026-2030 plan have been adjusted.

Updated 2026-2030 5.0bn DKK Investment programme vs. historical investments (DKK

1,000)

Financial

The global salmon product market's long-term balance is likely to favour

Bakkafrost. Bakkafrost has a long value chain and a cost-efficient production of

high-quality salmon products and will likely maintain financial flexibility

going forward.

In March 2022, Bakkafrost secured a 700 mEUR sustainability-linked credit

facility (expandable by 150 mEUR) with a 5-year term and 2-year extension

options which have been executed. This facility, along with Bakkafrost's strong

equity ratio, bolsters the Group's financial strength for organic growth and

cost reduction in Scotland, while also facilitating M&A and future organic

growth opportunities, and upholding an unchanged dividend policy.

Please find the Company's Q3 2025 report and the Q3 2025 presentation enclosed.

Contacts:

· Regin Jacobsen, CEO of P/F Bakkafrost: +298 235001 (mobile)

· Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 235060 (mobile)

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

-12 of the Norwegian Securities Trading Act.

About Bakkafrost:

Bakkafrost is the largest salmon farmer in the Faroe Islands and the second

-largest salmon farmer in Scotland. The Group is fully integrated from feed

production to smolt, farming, VAP and sales. The Group has production of

fishmeal, fish oil and salmon feed in the Faroe Islands and primary and

secondary processing in the Faroe Islands, Scotland and Denmark. The Group

operates sea farming and broodstock operations in both the Faroe Islands and

Scotland. The Group has built a biogas plant in the Faroe Islands. The

headquarter is located in the Faroe Islands, and the Group has sales and

administration offices in Edinburgh (Scotland), Boulogne-Sur-Mer (France), New

Jersey (US) and Munkebo (DK). The Bakkafrost Group has 1,686 employees (full

-time equivalents).

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