SALMON EVOLUTION ASA
Sector unknown·SALME · Oslo Børs·Fiscal year to 31/12/2023
Exposure profile
Derived from what the company itself writes. Empty directions mean the report doesn't mention themes of that type.
In their own words
Grouped by theme, from the management review in the annual report. A · The company itself is a verbatim quote, B · From the report is without a verified quote.
Aquaculture and fish feed
End markets
DriverNegative impact: weakens
“However, the last two years global production has gone down and ended at 2.8 million tonnes WFE in 2023, a decrease of 3.5%. A primary reason for this is that the conventional salmon farming industry has reached a production level where biological constraints put limit to further growth, as well as a stricter regulatory framework in key salmon farming regions.”
Annual report 2023A · The company itself
DriverPositive impact: strengthens
“Looking ahead for the next decade, a 3–7% yearly growth in salmon demand implies a total demand of around 3.8-5.5 million tonnes by 2033 which represents an increase of around 1.0-2.7 million tonnes WFE compared to current production.”
Annual report 2023A · The company itself
DriverPositive impact: strengthens
“The strong demand outlook, combined with challenges in the conventional salmon farming industry growing the supply side, have resulted in very strong salmon prices the last couple of years.”
Annual report 2023A · The company itself
DriverPositive impact: strengthens
“By optimizing water quality parameters with ideal and stable temperatures, we can reduce the time to harvesting for each batch from approximately 16 to 11 months with a 130g smolt insert weight. This increased growth creates the basis for greater production efficiency and optimal utilization of our licensed volume.”
Annual report 2023A · The company itself
DriverPositive impact: strengthens
“Also, the rising production cost and other challenges facing the conventional industry, has significantly improved the relative competitiveness of land-based, which we now see at parity level with the conventional industry.”
Annual report 2023A · The company itself
StrategyPositive impact: strengthens
“Evolution has its own smolt production at Salmon Evolution Dale AS in Dalsfjorden in Volda municipality, Norway. The location has a documented track record as a high quality smolt producer and has been producing smolt since 1995.”
Annual report 2023A · The company itself
Market
“In 2023 Salmon Evolution cemented its position as the global leader within land-based salmon farming. In total we harvested about 1,900 tonnes HOG of which 1,100 tonnes HOG in the fourth quarter alone, placing the Company as the world’s largest land-based salmon farmer.”
Annual report 2023A · The company itself
United States
Geography
StrategyPositive impact: strengthens
“In addition to this, Salmon Evolution is pursuing international expansion closer to markets, serving as a lower-CO alternative to long-haul transport and distribution.”
Annual report 2023A · The company itself
Geography
“Salmon Evolution has significant international ambitions, illustrated by our North America expansion project as well as our joint venure with Dongwon Industries in South Korea.”
Annual report 2023A · The company itself
Chains in: USD vs DKK/EUR mixed effect
Carbon tax and ETS prices
Regulation
StrategyPositive impact: strengthens
“We therefore place an emphasis on three key environmental areas: 1) climate change impacts 2) circular economy, pollution, and waste 3) biodiversity and nature By reusing water, we optimise energy consumption related to pumping and heating, which reduces our CO footprint. By filtering and treating wastewater, we reuse more marine resources.”
Annual report 2023A · The company itself
Chains out: this weakens Shipping and logistics, strengthens Energy efficiency, weakens Cement and building materials
ESG and sustainability reporting
Regulation
StrategyPositive impact: strengthens
“Key Points – Biodiversity & Nature ▪ Our closed system ensures minimal escape risk. ▪ Achieved ASC certification in 2023. ▪ Continuously monitoring local biodiversity and nature.”
Annual report 2023A · The company itself
Europe
Geography
StrategyPositive impact: strengthens
“In addition to this, Salmon Evolution is pursuing international expansion closer to markets, serving as a lower-CO alternative to long-haul transport and distribution.”
Annual report 2023A · The company itself
Premium consumers
End markets
Market
“Salmon Evolution has a high potential to produce what the market demands: a fresh, healthy, and sustainable premium product.”
Annual report 2023A · The company itself
Chains in: Consumer spending strengthens
Consumer preference shifts
End markets
DriverPositive impact: strengthens
“The salmon industry is backed by several major global macro trends that have led to a significant demand growth, hereunder increased global population and a growing middle class, increased focus on eating healthy food, and resource efficient and climate friendly food production.”
Annual report 2023A · The company itself
DriverPositive impact: strengthens
“The global increase in food demand, combined with stronger preferences for healthy and sustainably produced proteins, has led to a high growth in demand for salmon over the last few decades. This increase has mainly been met by a continuous expansion within conventional aquaculture.”
Annual report 2023A · The company itself
Chains out: this mixed effect Beer and beverages
Grain and agricultural commodities
Raw materials and inputs
DriverPositive impact: strengthens
“About 20 % of the consumed protein in the world is fish, and the natural fish resources have largely been exploited. Global supply of Atlantic salmon has seen a significant increase over the last decades.”
Annual report 2023A · The company itself
InputNegative impact: weakens
“Our most dominating inputs consist of seawater, power, feed, smolt, and oxygen. Since 2021 Salmon Evolution has had a strategic feed partnership with Cargill.”
Annual report 2023A · The company itself
Chains out: this strengthens Beer and beverages, mixed effect Agriculture and food production
Growing middle class
Geography
DriverPositive impact: strengthens
“The salmon industry is backed by several major global macro trends that have led to a significant demand growth, hereunder increased global population and a growing middle class, increased focus on eating healthy food, and resource efficient and climate friendly food production.”
Annual report 2023A · The company itself
Labour and wages
Raw materials and inputs
InputNegative impact: weakens
“Human capital is a key success factor in landbased salmon farming, and we have invested heavily in our organization which now totals around 70 people across the Group. We have been very fortunate in being able to recruit and retain highly skilled employees with a strong passion for their work.”
Annual report 2023A · The company itself
Electricity
Raw materials and inputs
InputNegative impact: weakens
“The Company has a green power supply agreement with Statkraft, Europe's largest generator of renewable energy. Statkraft is fully owned by the Norwegian government and is Norway's largest supplier of electricity to power-intensive industries.”
Annual report 2023A · The company itself
InputNegative impact: weakens
“In addition to feed and smolt, another essential input is oxygen, which is supplied by Nippon Gases. We share many of the same values, making this an ideal partnership.”
Annual report 2023A · The company itself
Chains in: Data centres strengthens, Electrification strengthens
Chains out: this strengthens Power grid expansion
Agriculture and food production
End markets
DriverPositive impact: strengthens
“Salmon are amongst the most efficient protein sources to produce. The feed conversion ratio (FCR) for salmon, or the amount of feed an animal needs to gain one kilogram of body weight, is well below other common protein sources.”
Annual report 2023A · The company itself
Chains in: Grain and agricultural commodities mixed effect, Climate change and extreme weather weakens, Grocery retail and private label weakens
Air freight
Raw materials and inputs
InputNegative impact: weakens
“The two main production regions share that most of the production is exported, with a significant portion of the volume being sold fresh to overseas markets requiring airfreight. Transportation of salmon via airfreight is expensive and increases the climate impact of the product.”
Annual report 2023A · The company itself
Climate change and extreme weather
Macro
DriverPositive impact: strengthens
“The salmon industry is backed by several major global macro trends that have led to a significant demand growth, hereunder increased global population and a growing middle class, increased focus on eating healthy food, and resource efficient and climate friendly food production.”
Annual report 2023A · The company itself
Chains out: this weakens Agriculture and food production
Asia and emerging markets
Geography
Geography
“Salmon Evolution has significant international ambitions, illustrated by our North America expansion project as well as our joint venure with Dongwon Industries in South Korea.”
Annual report 2023A · The company itself
EU climate and energy policy
Regulation
DriverPositive impact: strengthens
“The energy efficient system at Indre Harøy was given a grant of up to NOK 96.8 million from Enova.”
Annual report 2023A · The company itself
Chains out: this strengthens Circular economy and recycling, strengthens Energy efficiency
Nordics
Geography
Geography
“Norway is by far the largest producer of Atlantic salmon today with a market share of about 50% followed by Chile at around 25%.”
Annual report 2023A · The company itself
Competitors mentioned in the report
No named competitors in the report.
Financial figures
| Revenue latest fiscal year | 0.17 bn NOK |
| Revenue growth vs. the year before, same method | 253.2 % |
| EBITDA reported by the company | N/A |
| Net debt debt incl. leasing minus cash | 0.3 bn NOK |
| Diluted EPS per share | -0.37 NOK |
Source: annual report (ESEF) A. See the report
Criteria
| Profit | ✗ |
| Growing | ✓ |
| Healthy balance sheet | N/A |
Only the criteria that can be computed from financial statements on this page. The remaining criteria (such as price and dividend) need a share price and are in the analysis.
Figures are in the report's currency (NOK), not converted to DKK. Quotes are shown as the company's own words in the report's original language.