Iceland Seafood International hf

Inflation and high volatility impacted Iceland Seafood's operation in Q1 2023

Signs indicating a more balanced external environment is on the horizon

• Sales for Q1 2023: €123.1m, up 23% from Q1 2022
• Net margin for Q1 2023: €9.8m, down €0.6m from Q1 2022
• Normalised profit before tax in Q1 2023: €1.0m, compared with €2.6m Q1 2022
• Net loss for Q1 2023: €2.2m compared with €0.8m loss in Q1 2022
• Loss from discontinued operation (IS UK) in the period of €2.5m was in line with expectations
• Basic earnings per share (EPS) for Q1 2023 were negative by €0.0819 cents per thousand shares compared to negative €0.0279 cents per thousand shares for Q1 2022
• Total assets of €305.3m at the end of March 2023 were €15.0m higher than at the beginning of the year. Equity ratio of 25.8% at the end of Q1 2023,
• Normalised PBT Outlook range for 2023 is revised to €7.5 – 11.5m

The results of Iceland Seafood in Q1 2023 were marked by price increases of key input factors, especially Salmon. The group sales in the period of €123.1m were up 23% on the same period last year, driven by good sales of both the VA S-Europe division and S&D division, especially in the period before Easters. Normalized profit before tax of €1.0m in the quarter was €1.6m down on Q1 2022, where a steep increase in salmon prices severely impacted the profitability of both Ahumados Dominguez in Spain and Oceanpath in Ireland.

Sales of the VA S-Europe division were €66.0m in the period, increased by 22% from last year. Normalised PBT for the Division of €1.0m was down €1.6m from Q1 2022. March was a record sales month for IS Iberica, driven by solid sales of both Cod products and Argentinean shrimp during the weeks before easters. Production volume of Argentinean shrimp in the period was c.a. 70% up on the same period last year. However, margins were negatively impacted by challenging market situations and decreases in sales prices, leading to an overall margin reduction from the previous year. As previously mentioned, Q1 was difficult for Ahumados Dominguez due to steep increases in salmon prices. Steps are being taken to further integrate the operation of Ahumados Dominguez with IS Iberica, which will reduce costs and improve efficiency.