Iceland Seafood International hf

Volatility and unstable environment continued to affect Iceland Seafood's results in Q2 2023

Price adjustments have a negative impact in the short term but will create a basis for healthier demand in the long term.

• Sales for 1H 2023: €222.3m, up 7% from 1H 2022
• Net margin for 1H 2023: €16.9m, down €2.4m from 1H 2022
• Normalised profit before tax in 1H 2023: Negative by €0.8m, compared with €3.4m positive in 1H 2022.
• Net loss for 1H 2023: €15.3m compared with €2.9m loss in 1H 2022.
• Loss from discontinued operation (IS UK) in the period of €13.9m, including impairment of fixed assets of €8.3m related to the divestment of the business,
• Basic earnings per share (EPS) for 1H 2023 were negative by €0.5569 cents per thousand shares compared to negative €0.1054 cents per thousand shares for 1H 2022.
• Total assets of €272.6m at the end of June 2023 were €17.7m lower than at the beginning of the year. Equity ratio of 26.2% at the end of June 2023,
• Normalised PBT Outlook range for 2023 is revised downwards to €2.0 – €5.0m

Continuing high salmon prices in Q2 negatively affected the results of Iceland Seafood’s operations in Ireland and Ahumados Dominguez (AD) in Spain. Prices of various whitefish and shellfish species have decreased in recent months, some significantly. This has led to unusually low margins and inventory write-offs in some instances, which mark the results in Q2, especially in S-Europe. Although these price increases are causing pain in the short term, they will create a basis for healthier long-term demand which Iceland Seafood will benefit from.

The Group sales in 1H of €222.3m were up 7% from 1H 2022, but sales slowed down in Q2, where they were 7.6% down on last year.   Normalised PBT was negative by €0.8m in the 1H compared to €3.4m positive in 1H 2022. Reduced sales in Q2 and a decline in margins, especially in the S-Europe division, were the main cause for the decline in profits, in addition group finance costs were €1.0m higher due to higher debt and increased interest rates. Total assets of €272.6m were €17.7m lower than at the beginning of the year. Inventories and receivables decreased by nearly €9m in total during the period. The company increased its share capital in May by issuing 150m new shares, resulting in a €5.9m increase in equity. The equity ratio at the end of the period was 26.2%, compared to 28% at the beginning of the year.