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1. Company Snapshot

1.a. Company Description

Lerøy Seafood Group ASA produces, processes, markets, sells, and distributes seafood products worldwide.It operates in three segments: Wildcatch; Farming; and Value-Added Processing, Sales and Distribution.The company offers smoked and gravad salmon, and trout products; farmed and wild catch whole fishes; fillets and portions; ready to eat and ready to cook products; fish blocks and cubes; breaded products; pre-fried fish burgers and patties; crustaceans and molluscs; seaweeds; and other products.


Lerøy Seafood Group ASA markets its products primarily under the Norway Seafoods, Arctic Supreme, Fjord trout, Aurora Salmon, Fossen, Sea Eagle, Lerøy, and M?r brands to shops, restaurants, canteens, and hotels.The company was founded in 1899 and is headquartered in Bergen, Norway.Lerøy Seafood Group ASA is a subsidiary of Austevoll Seafood ASA.

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1.b. Last Insights on LSG

Lerøy Seafood Group ASA's recent performance was driven by strong biological performance and continued growth in its Value Added Products (VAP) and Sales & Distribution (S&D) segments. The company's Farming segment delivered an operational EBIT of MNOK 789 in the first quarter of 2025, a significant improvement from the same period last year. This was achieved despite lower spot prices for salmon and trout, highlighting the company's operational efficiency and genetic improvements. Additionally, the company's VAP and S&D segments showed continued growth, contributing to the company's overall strong operational EBIT of MNOK 1,049.

1.c. Company Highlights

2. Leroy Seafood Group Delivers Strong Q1 2025 Earnings Amidst Challenging Salmon Prices

Leroy Seafood Group reported a robust first quarter for 2025, with group operational EBIT reaching NOK 1.049 billion, up significantly from the previous year. The company demonstrated resilience across its segments, despite headwinds from lower salmon spot prices. Notably, the VAP, sales, and distribution segment achieved record earnings, with operational EBIT surging to NOK 212 million from NOK 176 million in Q1 2024. This strong performance was driven by high demand, improved capacity utilization, and structural enhancements. On the financial front, the company reported a net interest-bearing debt reduction of NOK 700 million, showcasing strong cash flow generation. CEO Henning Beltestad highlighted, "Our strategic investments in farming efficiency, shielding technology, and downstream operations are yielding positive returns, positioning us well to meet our long-term targets."

Publication Date: May -15

📋 Highlights
  • Farming Segment: - Record harvest volumes of 16,000 tons (Leroy Midt) and 15,000 tons (Leroy Sjotroll), with EBIT of NOK30 and NOK18 respectively, driven by strong biological performance and cost reductions.
  • Wild Catch Segment: - Operational EBIT of NOK150 million, despite quota reductions (cod down 32%, haddock down 2%), with higher prices offsetting lower volumes.
  • VAP, Sales, and Distribution: - Record earnings with operational EBIT of NOK212 million, up from NOK176 million in Q1 2024, driven by strong demand and structural improvements.
  • Financials: - Group operational EBIT of NOK1.049 billion, with net interest-bearing debt reduced by NOK700 million, supported by strong cash flow and investments in key technologies.
  • Outlook: - Strategic targets include 200,000 tons of farming volume and NOK1.250 billion EBIT for VAP, sales, and distribution, with global supply growth expected at 6.4% in 2025 and 2% in 2026.

Farming Segment Performance

The farming segment delivered a standout performance, with record net growth and lower mortality rates. Leroy Midt and Leroy Sjotroll reported harvest volumes of 16,000 tons and 15,000 tons, respectively, with operational EBIT of NOK 30 million and NOK 18 million. Leroy Aurora also contributed NOK 30 million in EBIT from a 7,000-ton harvest. Scottish Sea Farms faced challenges, with EBIT dropping to NOK 9 million from NOK 19 million due to lower price realization. However, the implementation of shielding technology has been a game-changer, reducing lice treatments by 75% and increasing harvest weights by 8%.

Wild Catch Segment Challenges

The wild catch segment encountered headwinds due to quota reductions, particularly for cod (-32%) and haddock (-2%). Despite these challenges, operational EBIT remained strong at NOK 150 million, supported by higher prices offsetting lower volumes. The company is optimistic about the remaining quotas, which are higher than last year, signaling a positive outlook for the segment.

VAP, Sales, and Distribution Momentum

The VAP, sales, and distribution segment continued to gain momentum, with record earnings of NOK 212 million. This growth underscores the effectiveness of the company's structural improvements and its ability to capitalize on strong demand. The segment's performance is a testament to Leroy's strategic focus on downstream operations and market expansion, particularly in Asia and Europe.

Valuation and Outlook

From a valuation perspective, Leroy Seafood Group trades at a P/E ratio of 10.68 and an EV/EBITDA of 8.31, reflecting a reasonable pricing of its growth prospects. The company remains on track to achieve its strategic targets, including 200,000 tons of farming volume and NOK 1.250 billion in EBIT for VAP, sales, and distribution. With a strong focus on operational efficiency, genetics, and shielding technology, Leroy is well-positioned to navigate industry challenges and sustain long-term growth. The recent surge in supply, particularly in Europe and China, is expected to stabilize, creating a favorable demand environment in the second half of the year.

3. NewsRoom

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Leroy Seafood Group ASA (LYSFF) Q3 2025 Earnings Call Highlights: Record Sales Amidst ...

Nov -20

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Lerøy Seafood Group ASA: Farming negatively affected by low salmon prices, but strong earnings in VAPS&D

Nov -12

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3 European Stocks Estimated To Be Trading Below Intrinsic Value

Oct -10

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Lerøy Seafood Group ASA: Trading update Q3 2025

Oct -06

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Lerøy Seafood Group ASA: Successful placement of a senior unsecured green bond

Sep -23

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European Stocks With Estimated Discounts Up To 45.3% Below Intrinsic Value

Sep -11

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.97%)

6. Segments

Value-Added Processing, Sales and Distribution

Expected Growth: 4%

Lerøy Seafood Group ASA's 4% growth in Value-Added Processing, Sales and Distribution is driven by increasing demand for sustainable and premium seafood products, strategic acquisitions, and efficient supply chain management. Additionally, the company's focus on product innovation, strong customer relationships, and effective cost control measures contribute to its growth momentum.

Wild Catch

Expected Growth: 3%

Wild Catch from Lerøy Seafood Group ASA's 3% growth is driven by increasing demand for sustainable and eco-labelled seafood, coupled with the company's strategic expansion into new markets, particularly in Asia. Additionally, investments in efficient fishing practices and processing technologies have improved yields and reduced costs, contributing to the segment's growth.

Farming

Expected Growth: 5%

Lerøy Seafood Group ASA's farming segment growth is driven by increasing global demand for sustainable seafood, strategic acquisitions, and expansion into new markets. Additionally, investments in technology and sustainable farming practices have improved efficiency and reduced costs, enabling the company to capitalize on growing market trends.

Elimination/Unallocated

Expected Growth: 2%

Lerøy Seafood Group ASA's Elimination/Unallocated segment growth of 2% is driven by increased operational efficiency, reduced administrative costs, and improved intercompany eliminations. Additionally, the company's focus on sustainable and responsible operations has led to cost savings and improved profitability.

7. Detailed Products

Fresh Salmon

Fresh salmon fillets, gutted and scaled, with a high-quality texture and flavor, suitable for various cooking methods.

Frozen Salmon

Individually quick-frozen salmon fillets, maintaining their nutritional value and flavor, suitable for long-term storage.

Smoked Salmon

Delicately smoked salmon fillets, with a rich flavor and smooth texture, ideal for canapés, salads, or as a topping.

Value-Added Products

Pre-marinated, seasoned, or breaded seafood products, ready for cooking, offering convenience and flavor.

Shrimp

Sustainably sourced, frozen, or fresh shrimp, available in various sizes and species, suitable for various cooking methods.

Other Seafood

A variety of seafood products, including cod, haddock, and mussels, available fresh or frozen.

8. Lerøy Seafood Group ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lerøy Seafood Group ASA is medium due to the availability of alternative protein sources such as poultry, beef, and pork. However, the demand for seafood is increasing, and the company's focus on sustainability and quality helps to differentiate its products.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the seafood market and the lack of concentration among buyers. Lerøy Seafood Group ASA has a diverse customer base, which reduces its dependence on individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the concentration of suppliers in the seafood industry. However, Lerøy Seafood Group ASA's vertical integration and long-term contracts with suppliers help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the seafood industry, including the need for significant capital investment and regulatory compliance. Lerøy Seafood Group ASA's established brand and market position also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the seafood industry. Lerøy Seafood Group ASA faces competition from other major players in the industry, and the company's focus on sustainability and quality helps to differentiate its products and maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.27%
Debt Cost 8.31%
Equity Weight 67.73%
Equity Cost 8.31%
WACC 8.31%
Leverage 47.64%

11. Quality Control: Lerøy Seafood Group ASA passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lerøy Seafood

A-Score: 5.0/10

Value: 4.3

Growth: 4.7

Quality: 3.2

Yield: 6.9

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Südzucker

A-Score: 4.9/10

Value: 7.8

Growth: 5.0

Quality: 2.8

Yield: 3.8

Momentum: 1.0

Volatility: 9.0

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Stock-Card
AAK

A-Score: 4.8/10

Value: 5.1

Growth: 7.4

Quality: 5.8

Yield: 3.1

Momentum: 0.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Emmi

A-Score: 4.8/10

Value: 4.7

Growth: 4.8

Quality: 4.8

Yield: 3.1

Momentum: 1.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Tate Lyle

A-Score: 3.9/10

Value: 3.4

Growth: 1.1

Quality: 4.0

Yield: 8.8

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Glanbia

A-Score: 3.5/10

Value: 4.2

Growth: 5.0

Quality: 4.5

Yield: 4.4

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.86$

Current Price

47.86$

Potential

-0.00%

Expected Cash-Flows