Predicts huge explosions of war and inflation

Predicts huge explosions of war and inflation

AKVA Group will publish and present its second-quarter results next Friday, August 12, but is already warning that the numbers will be weak.

According to the agriculture technology company, operating profit will be minus 41 million Norwegian kroner.

The reason is cost growth due to high inflation, guarantee provisions and cost.

102 million extra

It is estimated that high inflation and disruptions in supply chains globally as a result of the Russian invasion of Ukraine caused additional costs to the company of NOK 37 million in this period, and AKVA Group warns that profitability in the rest of 2022 may also be affected by inflation and constraints in supply chains.

In addition, there is an allotment of NOK 31 million in the marine aquaculture sector. These mainly relate to a barge project in Canada.

At the top, it includes AKVA Group books and a cost allotment of 34 million linked to specific projects within land-based farming.

Strong revenue growth

Still, income in the quarter will be solid, according to AKVA Group. It was set at NOK 907 million, which is 9 percent growth over the second quarter of last year.

In the first quarter of this year, the turnover of AKVA Group was 849 million NOK. Then the operating profit ended at plus 59 million. Demand reserve was set at 1.85 billion.

At the same time, the company announced that “global instability, uncertainty related to the supply chain and cost growth” could affect profitability in the short term.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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