Norcod (NCOD) Q4 2024 earnings summary

Executive summary

• Q4 revenue reached NOK 124 million, up 47% year-over-year, with operating losses reduced by 66% to NOK 35 million.

• Harvested 2,390 tons in Q4, bringing the annual total to 8,336 tons, exceeding the 8,000-ton target, supported by strong biological performance and favorable sea temperatures.

• Jamnungen site received MAB increase, and new pens stocked at Bjørnvika; market conditions for farmed cod remain robust.

• Revised growth plan targets 25,000 tons by 2029, supported by NOK 300 million in new funding commitments via increased debt and private placement.

• Strong market conditions and rising prices throughout 2024, with further increases expected in 2025.

Financial highlights

• Revenue increased 49% year-over-year in Q4, aligned with growth strategy; full-year revenue rose 47% to NOK 397.2 million.

• Production cost per kilo dropped to NOK 46, improving profitability.

• Operating expenses rose to NOK 177 million due to higher harvest volumes.

• Operating loss reduced to NOK 35 million, down 67% from Q3 2023 and from 104 million in Q4-23.

• Non-recurring items of NOK 7.2 million related to a fish escape incident.

Outlook and guidance

• Price increases expected to continue through Q1 and Q2 2025.

• Long-term growth strategy to scale production stepwise, with one new site setup in 2025.

• Break-even or positive EBITDA not expected in Q1 or Q2 2025; opportunities seen in the fall with Jamnungen harvest.

• Profitable long-term growth strategy revised to align with favorable market dynamics; 300 MNOK funding planned via debt and equity.

• Increased harvesting in Q1 2025 to manage maturation will negatively affect 2025 cash flow from operations compared to previous guidance.