Q4 2023 results

Navigating challenging conditions and positioning for further growth

Bíldudalur, 15th of February 2024

Icelandic Salmon is the parent company of Arnarlax, and other subsidiaries involved in salmon farming and processing in Iceland. The companies are collectively referred to as "Icelandic Salmon" or the "Group".

Operations

In the fourth quarter 2023, Icelandic Salmon continued ramping up harvest volumes, up from both the previous quarter and the corresponding quarter last year. The group harvested 7,219 tonnes up from 6,008 tonnes in the fourth quarter 2022, an increase of 20 per cent. The high harvest volume in the fourth quarter was partly a result of the previously reported biological challenges, which prompted the company to harvest early for animal welfare reasons.

“I am proud of our team’s effort in navigating challenging working conditions. As previously reported, our team had to adapt quickly to a biological challenge in Tálknafjörður, where biological challenges posed a risk to fish health and continued sustainable growth,” said Bjørn Hembre, CEO of Icelandic Salmon.

The group reported revenues of EUR 51.6 million in the fourth quarter 2023, compared to 51.7 million in the fourth quarter 2022. The EBIT for the quarter was EUR 2.0 million, resulting in an EBIT/kg of EUR 0.28. The EBIT/kg was down from the corresponding quarter last year of EUR 1.55, mainly due to higher cost level related to the reported biological challenges. A one-off cost of 5.2 million EUR was booked in the fourth quarter 2023, adjusted for this the EBIT/kg was EUR 1.00.

Strategic milestones

Icelandic Salmon continues to monitor markets closely with the aim to obtain the best price possible for its products. Partly for this reason, the company increased its sales to Asia and Europe in the fourth quarter, and reduced sales to the US where markets were temporarily softer.

The Group is awaiting approval for a new 10,000-tonnes farming license in Ísafjarðardjúp, a 4,500-tonnes MAB license in Arnarfjörður and new MAB utilization regime for two sites in Arnarfjörður. Uncertainty persists regarding the allowed share of fertile fish on the Ísafjarðardjúp license and the implications for Arnarfjörður applications under Iceland's new proposed regulatory regime. A final decision is expected in 2024.

In January, Icelandic Salmon received a new license for its smolt plant Gileyri for an additional volume capacity of 1,000 tonnes. Implying opportunities for increase production on existing capacity levels and a potential for further scale-up.