Investments ensure growth for Kaldvik
Iceland farmer aims for a stable production capacity of 30,000 tonnes annually
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Kaldvik AS, formerly known as Ice Fish Farm, delivered strong figures for the third quarter of 2024. At the same time, there is a heavy focus on investments in smolt production and solutions for future growth, reports Fish Farming Expert's Norwegian sister site, Kyst.no.
This was revealed in the company's Q3 report published today.
Increased biomass
In the third quarter, Kaldvik had a turnover of €24.5 million (£20.4m), up from €2.1m in the same period last year.
The revenue growth corresponds to approximately 1,067%.
Operating profit before biomass adjustments rose to €2.1m, a significant improvement from €0.3m the year before.
The group's EBIT per kilo for Q3 was €0.55, compared to €-2.49 in Q2, reflecting the effect of a limited harvest volume in Q2.
During Q3, the company harvested 3,798 gutted weight tonnes of salmon, while the company's biomass increased to 22,500 tonnes, up from 15,174 tonnes in Q3 2023.
Kaldvik invested €5.5m in capital expenditure in the quarter, primarily aimed at upgrading its smolt facilities. This is part of a larger investment plan of €25m for 2024, with the goal of reaching a stable production capacity of 30,000 tonnes annually.
Postpones harvesting
The company writes that market prices were somewhat lower than expected, and the average price per kilo of salmon fell from €7.32 in Q2 to €6.16 in Q3, affected by seasonal fluctuations. The farmer has chosen to postpone some of the harvest, which will result in higher growth and potentially higher price levels in upcoming quarters.
The company also points to improvements in smolt production, with lower mortality and better survival rates. Kaldvik stocked 2 million smolts with an average weight of 361 grams in Q3 and expects to stock 6.2 million smolts in 2024, up from 5.4 million in 2023.
Kaldvik is guiding for a full-year harvest volume of 15,000 tonnes this year, while also preparing for further expansion. The company is also awaiting government approval for a new permit in Seyðisfjörður, which will provide a capacity of 10,000 tonnes.
