ISI: Normalised PBT was up 4.4 million € in the first 9M and 2024 Outlook remains 5.0 -7.0 million €

Iceland Seafood International Reports Higher Revenue and Improved Margins in Q3 2024

Reykjavik-based Iceland Seafood International (ISI) achieved year-over-year growth in sales and profitability in Q3 2024, edging closer to posting a net profit for the fiscal year.

• Net Margin for 9M 2024: €28.5 million, up €4.1 million. 

• Normalised Profit Before Tax: €2.5 million positive, vs. (€1.9 million) loss in 9M 2023. 

• Net Loss: (€1.5 million), improved from (€20.7 million loss) in 9M 2023. 

• 9M 2024 Sales: €314.0 million, down 1.3 % from 9M 2023. 

• EPS for 9M 2024: Negative €0.0479 per thousand shares, vs. negative €0.0699 in 9M 2023. 

• Total Assets: €239.1 million, down €15.7 million; equity ratio at 29.9%. 

• 2024 Normalised PBT Outlook: €5.0 million to €7.0 million. 

Group Performance

Group sales for the third quarter totaled €102 million, representing a 6.5% increase compared to the same period in 2023. The normalised pre-tax profit for the quarter reached €1.4 million, a €2.5 million improvement over Q3 2023.

VA S-Europe Division

The Value-Added S-Europe division reported Q3 sales of €47.4 million, up 6% year-over-year. However, sales for the first nine months of 2024 were down by 2.5% in value and 6% in volume compared to the same period last year. Despite this, the division’s normalised pre-tax profit rose to €1.1 million, an increase of €2.3 million over Q3 2023.

• Achernar: Sales remained consistent with the first nine months of 2023, but contribution margins improved significantly.
• Ahumados: Sales increased by 6.7% in value and 3.7% in volume during the first nine months of 2024.

VA N-Europe Division

The Value-Added N-Europe division recorded Q3 sales of €13.4 million, a 6% increase from Q3 2023. Total sales for the first nine months reached €40.1 million, up from €39 million during the same period last year.

Margins in the division were challenged by higher-than-expected salmon prices during Q1 and part of Q2, echoing issues faced in 2023. The division posted a pre-tax profit of €0.7 million in Q3, down from €0.9 million in Q3 2023. Salmon prices, which peaked in April, have since declined significantly. Current forward pricing indicates stable salmon prices for the remainder of the year, which is expected to benefit salmon-based operations.

S&D Division

The Sales and Distribution division experienced a strong start to the year, with robust performance continuing through Q3. Key drivers included solid sales of fresh cod and haddock, as well as frozen-at-sea cod and haddock in the UK and US markets. Signs of recovery in the European market also supported strong results for IS Iceland.

Outlook for 2024

Based on Q3 results and current market conditions, ISI expects normalised pre-tax profit for 2024 to remain in the range of €5.0 million to €7.0 million. Cod prices are anticipated to stay high, while salmon prices are expected to remain stable through year-end. All divisions are forecasted to perform in line with their budgets, with no significant changes projected in the seafood sector for the remainder of the year.

Ægir Páll Friðbertsson, CEO: "The first nine months of 2024 have reassured us that we are on the right track. All key indicators are heading in the right direction.  That is a very positive sign for us in a market that has been highly challenging in all aspects for quite a long time now.  High interest rates and inflation, high raw material prices, lesser demand, decreasing fish consumption, political instability, and increasing storage and transport costs.  Markets in Europe seem to be recovering slowly, and the demand from the US market has increased due to the US ban on Russian fish.  We expect Cod prices to remain high in coming years due to a quota reduction in the Barents Sea. Salmon prices were high during the year's first half but came well down in the middle of the year.  We anticipate stable salmon prices throughout the year, with a potential increase towards the end.  

While the economic landscape remains uncertain, there are positive signs emerging. Interest rates, inflation, and food inflation have been easing in our key markets, which is encouraging. However, high interest rates are having negative impact on our financial results compared to last year. While markets continue to be sluggish, there are signs of recovery, and we are hopeful that this will lead to increased demand in the coming months.

Full year Normalised PBT* (m’s)

"To emphasize once again, our primary focus has been and will continue to be on enhancing the performance of our existing business units, optimising the company's capital structure, and reassessing our overall strategy. These priorities will remain central in the months ahead. We recognise the significant growth potential within our strong network, robust sales and sourcing channels, and our talented team of seafood professionals. Our goal is to further strengthen Iceland Seafood, positioning the company to navigate future challenges and capitalize on emerging opportunities. We are confident that this approach will ultimately benefit the company, its owners, and our staff. The results for the first nine months reinforce that we are on the right track and moving in the right direction." 

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Address:	Kollunarklettsvegur 2
City:	Reykjavík
State/ZIP:	(104)
Country:	Iceland
Phone:	+354 550 8000
Fax:	+354 550 8001
E-Mail:	[email protected]
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