AKVA predicts 25% growth in operating profit
Aquaculture supplier AKVA today revealed ambitious performance targets based on an expected increase in Atlantic salmon consumption of between 1-2 million tonnes by 2030.
The Norwegian company intends to deliver a minimum annual EBIT (operating profit) increase of 25%, an improved return on average capital employed to at least 15% by 2023, and an increase of at least 50% on innovation spending.
AKVA, which has branches in Norway, Chile, Denmark, Scotland, Spain, Greece, Iceland, Canada, Australia and Turkey, also intends to ramp up spending on its digital platforms, AKVA connect, AKVA observe and Fishtalk.
Global megatrends
In a press release ahead of a capital markets event today, AKVA said the expected demand growth is in line with the increase in salmon consumption over the last 10 years.
It added that the outlook is strongly supported by global megatrends where consumers focus on healthy and sustainable food produced close to where they live.
A major part of the increased volume is likely to come from conventional cage-based farming, supported by improved fish health and technology innovations, said AKVA. The remaining part is expected to be supplied from land-based farming and other unconventional technologies.
Land and sea
“For AKVA group, as a leading global supplier of technology to the salmon industry, the expected increase in both cage-based and land-based salmon farming will represent two growth engines for our business,” said chief executive Knut Nesse.
The market outlook forms the basis for the group’s strategy for 2021-2023, which was supported by the board of directors earlier this month.
Attractive dividend
AKVA’s chief financial officer, Ronny Meinkøhn, said: “I am pleased that we all concurred on the ambition to deliver minimum 25% annual EBIT-increase.
“We are also confident that AKVA group already has the financial capacity to realise our organic growth strategy, and at the same time pay an attractive and gradually increasing dividend to our shareholders.”
AKVA’s capital markets day starts at 12pm GMT. An extensive presentation package will be made available on AKVA’s web pages and at www.newspoint.no at the same time.
