The Salmon Farming Industry in Norway 2023

Key Takeaways

The final 2023 edition is now out, taking a deep dive into several different aspects. Here are some key takeaways from the report:

1. The total export value of Atlantic salmon in 2022 amounted to NOK 105,6 billion, increasing by NOK 24,4 billion (+30%) compared to 2021. Even with volumes decreasing by 2%, the export value reached all-time high yet again in 2022. The export value of trout from Norway in 2022 was close to NOK 5 billion, increasing by NOK 0,9 billion (+24%) from 2021.

2. Total income for the large companies in the sample increased by 27%, and prices increased by 43%. The weighted average EBIT margin for these companies increased from 20,8% in 2021 to 28,5% in 2022. As for the small and mid-sized companies in the sample, net sales increased by 23% in 2022. The weighted average EBIT margin for small and mid-sized companies was 26,1% in 2022, inclining from 18,4% the preceding year.

3. The Norwegian export companies covered in the sample, recorded a 27% increase in sales in 2022 compared to the preceding year. The weighted average operating margin was 1,3% in 2022, down from 1,7% in 2021.

4. The passed additional 25% resource tax on salmon and trout producers was applied from 01.01.2023, meaning the 2022 financial year is not affected per se, however the substantial tax increase has encouraged changes in company structures which have effect on 2022 financial accounts. Furthermore, the missing details in the proposal increased regulatory risk and caused uncertainty when first announced in September 2022. As the proposal entailed a significant reduction in any large company’s free cash flow, many investments were cancelled or put on hold.

5. The government’s tax proposal also had large implications on the auction of MAB. The auction prices were significantly lower than previous years, and approximately 25% of the offered volume was not sold. None of the publicly listed aquaculture companies purchased capacity in the auction.