Bakkafrost’s revenue dropped almost 5% following a “challenging” 2025.
The salmon giant’s revenue declined by 4.1% from DKK 7.3bn (£851.9m) to DKK 7bn (£816.9m), with operational EBIT also falling to DKK 888m (£103.5m) from DKK 1.6bn (£186.7m), due to lower average salmon prices.
Bakkafrost board chair Rúni Hansen and CEO Regin Jacobsen blamed elevated global supply driven by “improved biological conditions and strong production growth in Norway and Chile”.
They said it increased the availability of “superior-quality fish in the spot market”, which “reduced price differentiation between large and standard-sized salmon and placed pressure on premium levels”, in the company’s Integrated Annual Report.
“The narrowing of size premiums and increased short-term volatility required greater commercial flexibility,” Hansen and Jacobsen added. “Bakkafrost’s diversified sales model, disciplined contract strategy and broad geographic footprint were important in managing these dynamics and securing stable market access across Europe, the US and Asia.”
The company added that losses were partially offset by by harvest volumes, which jumped 18% to 106.8 tonnes.
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Despite declining profit and revenue, the board chair and CEO said global supply growth was expected to steady to low-single-digit levels from this year. This, combined with growing demand, particularly in Asia and China, “supports a constructive long-term outlook for high-quality salmon”.
Hansen and Jacobsen added Bakkafrost had strengthened its operations in the Faroe Islands, where it achieved a record production of 18.7 million large, high-quality smolt, and Scotland, where its ongoing transition towards large-smolt farming yielded material improvements, with average harvest weight increasing to 5.3kg.
Looking ahead to 2026, Hansen and Jacobsen said this change in farming in Scotland “represents our most significant value creation opportunity”, especially with biological improvements expected in the latter part of 2026.
Bakkafrost expects to harvest approximately 92,000 tonnes in the Faroe Islands and around 20,000 tonnes in Scotland, corresponding to a total of approximately 112,000 tonnes, this year.
However, the company’s greenhouse gas emissions have risen due to increased production from 724 tonnes CO2e to 893.3 tonnes CO2e. Bakkafrost maintained it was committed to reducing its Scope 1 and 2 emissions by 50% and Scope 3 emissions by 52% per tonne of product sold by 2030.
Hansen and Jacobsen said: “The successful execution of our transition plan will depend on technological development, regulatory frameworks, particularly regarding renewable energy access in the Faroe Islands, and continued collaboration across our value chain.”
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