This article first appeared on GuruFocus .
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Revenue:Increased 16% year-on-year to DKK 1.8 billion in Q2 2026; DKK 3.5 billion for the first half of 2026.
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Operational EBIT:Rose to DKK 273 million in Q2 2026, up from DKK 65 million in Q2 2025; DKK 816 million year-to-date.
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Net Profit:Negative at DKK 161 million for Q2 2026, impacted by fair value adjustments of minus DKK 406 million.
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Earnings Per Share (EPS):DKK 2.31 for Q2 2026; DKK 7.46 for the first half of 2026.
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Cash Flow from Operations:DKK 273 million in Q2 2026, compared to minus DKK 204 million in Q2 2025; DKK 727 million for the first half.
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Group All-Inclusive Margin:Improved to DKK 9.12 per kilo, up from DKK 2.82 per kilo in Q2 2025.
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Faroese Harvest Volume:Record quarterly harvest of 26,700 tonnes, up 67% year-on-year.
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Scottish Harvest Volume:Declined 55% to 3,100 tonnes in Q2 2026.
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Faroese Operational EBIT per Kilo:DKK 5.96, up from DKK 0.37 in Q2 2025.
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Scottish Operational EBIT:Minus DKK 139 million in Q2 2026, compared to minus DKK 127 million in Q2 2025.
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Feed Sales:Relatively stable at 37,000 tonnes in Q2 2026; up approximately 6% to 72,800 tonnes for the first half.
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Fish Meal and Oil Sales:Zero external sales in Q2 2026, with all production directed to internal use and inventory buildup.
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Marine Raw Material Sourcing:109,000 tonnes in Q2 2026, down 32% year-on-year.
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FOF Segment Operational EBIT:Increased by DKK 30 million to DKK 119 million, with margin improving from 13% to 20%.
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Freshwater Scotland Operational Loss:Reduced to DKK 30 million in Q2 2026, from DKK 72 million in Q2 2025.
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Faroese Freshwater Operational EBIT:Broadly stable at DKK 82 million, with a 30% margin.
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Services Segment Operational EBIT:Increased to DKK 35 million in Q2 2026, up from DKK 17 million in Q2 2025.
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Sales and Other Segment Revenue:Increased 34% to almost DKK 3 billion in Q2 2026, with volumes up 30% to 29,900 tonnes.
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Sales and Other Segment Operational EBIT:Increased by DKK 17 million to DKK 114 million in Q2 2026.
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Dividend:Paid DKK 3.45 per share in May 2026.
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Net Debt:Increased to DKK 4 billion at the end of Q2 2026, from DKK 3.8 billion in Q1 2026.
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Equity Ratio:Unchanged at 58%.
Release Date: August 31, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenues increased 16% year-on-year to DKK 1.8 billion, with operational EBIT jumping to DKK 273 million from DKK 65 million last year.
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Faroese operations delivered a record harvest of 26,700 tonnes, up 67% year-on-year, with operational EBIT per kilo improving to DKK 5.96 from DKK 0.37.
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Strong cash flow from operations of DKK 273 million, a significant improvement from a negative DKK 204 million in the prior year.
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Feed division maintained stable sales at 37,000 tonnes, with operational EBIT margin improving to 20% from 13%.
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Strategic inventory buildup of fishmeal and oil ensures self-sufficiency into Q2 2027, providing flexibility against raw material price inflation.
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Applecross hatchery ramp-up progressing, with smolt transfers increasing to 3.9 million in Q2 from 0.9 million last year, and operational loss reduced to DKK 30 million from DKK 72 million.
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Market outlook constructive with limited supply growth expected in H2 2026 and 2027, supporting stronger prices.
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Strong balance sheet with equity ratio unchanged at 58% and liquidity supported by DKK 1.3 billion in undrawn facilities.
Negative Points
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Scottish harvest volumes dropped 55% to 3,100 tonnes, leading to a negative operational EBIT per kilo of DKK 44.12 due to fixed cost dilution.
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Fair value adjustments were negative at DKK 406 million, resulting in a net loss of DKK 161 million for the quarter.
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Biological challenges from externally sourced smolt batches in Scotland caused incident-based costs of DKK 31 million, with high per-kilo impact due to low volumes.
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Marine raw material sourcing decreased 32% to 109,000 tonnes, and no external fishmeal or oil sales were made, impacting revenue.
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Net debt increased to DKK 4 billion from DKK 3.8 billion due to investments, working capital, and dividend payments.
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Rising prices for marine feed ingredients are expected to pressure feed costs, though mitigated by inventory and formulation flexibility.
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Applecross capacity utilization remains low at around 35%, with full production not expected until Q2 2027.
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Global salmon prices were muted with a reduced large fish premium, impacting sales margins.
Q & A Highlights
Q: Can you provide more details on the fish meal and fish oil inventory levels, and whether the volume is significantly higher than normal or if it's due to a change in feed formulation? What is the status on fish oil? A: Regin Jacobsen (CEO): We have enough inventories of fish meal and oil to cover our needs into the second quarter of next year. The volume is high, but not necessarily higher than in some previous years at the same time. At the end of the quarter, we had more or less full inventory, with the value of fish meal and oil representing around 75% of the total inventory at cost price. We are seeing a dramatic increase in raw material costs, so we are introducing new raw materials into our feed formulation to balance costs. Our goal is to maintain a high inclusion of marine ingredients to preserve the unique Faroese product quality while balancing feed costs to keep them more or less similar to before.
Q: Does this mean your 2027 feed costs will be in line with what we are currently seeing? A: Regin Jacobsen (CEO): More or less, yes.
Q: You mentioned that externally sourced smolt in Scotland was the problem. Why did you stock 1 million more external smolt in Q2 year-on-year? A: Regin Jacobsen (CEO): We have had issues with externally delivered smolt, but there have been good batches in between. We have reduced the externally sourced smolt compared to our plan and have taken out batches that we think are not good while maintaining those we believe are good. It's also about volume, as we need to increase production speed. As Applecross comes to full capacity next year, we expect internally delivered smolt to be above 10 million, hopefully around 12 million, which should improve operations and allow us to better select good external batches.
Q: During Q3, the Faroe Islands have gotten zero tariffs to the US. Should we expect a lot more sales in that direction in Q3 and onwards? A: Regin Jacobsen (CEO): Yes, we are increasing our sales to the US, and you will see this going forward. This is not just because of the tariffs; it has been a strategy for us to have a high focus on sales in the US because that's where we have the best market presence, penetration, branding, and therefore the best margins.
Q: Is it possible to look at how much more you pay for blue whiting and how much that increases your raw material cost on fish meal and fish oil? A: Regin Jacobsen (CEO): We are not in the season at the moment. The season for blue whiting catches is normally from December to May/June. Everything we need now has been produced in the first and second quarter, and we start a new season at the end of the fourth quarter. The main question is what the cost will be next year.
Q: For Q1 and Q2, how much more was the raw material cost up on fish meal and fish oil for you? A: Regin Jacobsen (CEO): That you can see in some statistics; I don't have the number, but the main question is what it will be next year.
Q: If the blue whiting loses its certification, do you have a plan B? What would that look like? A: Regin Jacobsen (CEO): Plan A was to build big inventories, which we have done. We have sufficient certified meal until we reach into the second quarter. During this phase, we have several options that we will keep to ourselves.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
