Grieg Seafood 40 rev NOK971M

Grieg Seafood 40 rev NOK971M

Grieg Seafood Reports Revenue Decline Amid Market Challenges

Grieg Seafood ASA (GRGSF) reported a trailing twelve-month revenue of $580 million USD as of 2024, reflecting a decline from $660 million in 2023 to $530 million in 2024. This reduction aligns with broader market shifts observed during the pandemic, including reduced demand from the hotels, restaurants, and catering (HoReCa) sector and lower salmon prices.

The company has maintained operations as an essential service during the pandemic, prioritizing employee safety and business continuity through measures such as social distancing and restricted travel. Despite logistical challenges, including elevated airfreight costs, Grieg Seafood's diversified geographic presence—spanning Norway, the UK, Canada, and British Columbia— has helped mitigate disruptions.

Revenue pressures have been compounded by market volatility. The shift in consumer demand toward retail segments has partially offset declines in HoReCa sales, though prices remain below pre-pandemic levels. The company's 2024 financial reports indicate a focus on liquidity preservation and adherence to revised loan covenants amid uncertain market conditions.

Grieg Seafood's long-term investment strategy, including its Newfoundland project, has faced delays due to reduced market visibility. The company also postponed its 2020 dividend to align with its extensive investment plans and heightened financial prudence.

While the company's 2024 revenue reflects a challenging operating environment, its emphasis on sustainable growth and operational efficiency remains central to its strategy. Investors are advised to monitor evolving market dynamics, including potential shifts in consumer behavior and global supply chain adjustments, which could influence future performance.

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