April 16, 2012


Leroy Seafood Group hit second-best profits for 2011


Leroy Seafood Group's profits are the second-best ever achieved at NOK1.2 billion (US$206 million) and total sales amounted to NOK9.2 billion (US$1.5 billion).


"It really is an impressive achievement to sustain such growth, despite the fall in prices for our main product, Atlantic salmon and trout," said CEO Henning Beltestad.


The Group produced a total of 147,600 tonnes of salmon and trout in Norway and Scotland, up 13.3% from 2010, reinforcing its position as the second-largest producer of salmon and trout in the world.


In November 2010, the firm signed an agreement for the purchase of 50.7% of the shares in Sjøtroll Havbruk, which had total production of 22,500 tonnes in 2011, making it one of the largest producers of salmon and trout in the region of Hordaland.


Beltestad noted that 2011 was a difficult year for the aquaculture industry, with heavy fluctuations in prices. In H1, prices reached a record high, but then fell in H2 from NOK45 (US$7.73) per kilogramme to NOK18 (US$3.09) per kilogramme.


In total for 2011, the growth in global supply was 12.3% (6.5% in Norway and 71.3% in Chile). On the whole, the entire growth in supply emerged during H2 and it took time for the market to adapt to the higher supply.


The low prices in the second half of 2011 paved the way for an extremely strong development in sales in numerous markets and particularly in countries such as Russia and Japan, where there were sales increases of 24% and 30%, respectively. The increase in sales for other/new markets was 19%.


Beltestad said 2012 will also be a difficult year, with expectations of a global increase in demand of as much as 16%. In order to meet this, his company will need a strong sale organisation that can further develop new and well-established markets and segments.


Lerøy has acquired 50.1% of the shares in Rode Beheer BV in Holland. Rode is one of the leading processors of seafood in that country and works with a high volume of production of smoked, marinated and fresh packaged products in addition to frozen products based on salmon from Norway.


Rode is thus perfectly suited to Lerøy's strategy for further development of the Group's global sales network. In 2011, Rode had operating revenues of EUR51.1 million (US$67 million).


The acquisitions of Rode as well as Jokisen Eväät OY, a leading importer and distributor of fresh salmon and seafood in Finland, are important advancements in the development of the Group's market strategy, the CEO said.