Quarterly Report • Aug 20, 2024
Quarterly Report
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Icelandic Salmon Q2 2024: Biological performance improving. New license awarded
20 August 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 second quarter 2024, Icelandic Salmon harvested 700 tonnes compared to
88 tonnes in the same quarter last year. Harvesting volumes have remained low as
the Group has prioritised growing biological assets and the volume also reflects
the seasonal variation in growth due to temperatures.
The biological challenges seen in the beginning of the year continued to impact
the Group's operation in the second quarter, but various corrective measures
implemented are beginning to show positive effects. Some biological
irregularities continued in the second quarter, and a reassessment of stock
value resulted, together, in a one-off charge of EUR 3.9 million during the
period.
"Our highly committed team has worked hard to manage and mitigate the challenges
that we have faced since the winter, and these efforts are now beginning to show
results. Harvest volumes were low, but the quality of our salmon was good, and
we were able to supply the market with a superior share of 90 percent in the
quarter" said Bjørn Hembre, CEO of Icelandic Salmon.
The group reported revenues of EUR 9.7 million in the second quarter 2024,
compared to 2.7 million in the second quarter 2023. The EBIT for the quarter was
negative EUR 3.8 million, which includes the one-off cost mentioned above.
Operational EBIT/kg was negative EUR 5.37. Adjusted for one-offs EBIT/kg was
positive EUR 0.19.
Strategic milestones
During the quarter, Icelandic Salmon achieved a long-awaited strategic milestone
by securing a 10,000-tonnes license for sterile salmon at three new sites in
Ísafjarðardjúp, positioning the Group for future sustainable growth.
With this new license, Icelandic Salmon holds licenses with a total of 33,700
tonnes MAB.
Additionally, the Group was also granted a licence of 1,000-tonnes MAB at its
smolt facility in Gileyri, and the group is awaiting potential approval for an
additional 4,500 tonnes MAB in sea and two new sea-sites in Arnarfjörður.
Market update
Icelandic Salmon continues to see strong interest for its salmon.
The Group benefitted from good price achievements on its small share of
downgraded fish. Iceland allows export of downgraded head-on gutted (HOG) fish
which industry customers use as raw material for high-quality end products.
The contract share for the quarter was 59 %, with a negative effect on the
result due to the high spot prices.
Outlook
For full year 2024, Icelandic Salmon reduce its volume guidance to 13,000
tonnes, due to biological challenges and delayed harvest.
The biological challenges reported in the first half of the year will affect
harvest volumes in 2025, but no specific number for next year is given at this
time.
"For the longer-term, we see growth potential of up to 36,000 tonnes on our
existing licenses. With the quality of this year's smolt and recent improvements
in biological performance, we are optimistic about reaching 26,000 tonnes in the
coming years. Reaching 36,000 tonnes will depend on upcoming decisions on how to
optimize our sterile licenses in the best way. I am confident in our ability to
drive this growth and reach our full potential, to continue to supply the world
with sustainable Icelandic salmon," said Bjørn Hembre, CEO
Presentation details
Attached is the presentation for the second quarter 2024.
The Group's CEO Bjørn Hembre and CFO Jónas Heiðar Birgisson will be presenting
the Group's results at 9:00 Icelandic time (11:00 CEST). The presentation will
be held in English via webcast, please copy and paste the following link into
your browser: www.arnarlax.webcast.is (http://www.arnarlax.webcast.is).
There will be a Q&A session after the presentations so you can send in questions
during the presentation to [email protected] (mailto:[email protected])
A recording of the presentation will be made available on the Group's website.
After the presentation there is an opportunity to book one-on-one meeting either
at our office in Kópavogur (Urðarhvarf 14) or on Teams between 10:15 - 15:00
Icelandic time, if interested, please send an email to [email protected]
(mailto:[email protected])
For further information, please contact:
CEO Bjørn Hembre
Tel: +354 620 1936
Email: [email protected]
CFO Jónas Heiðar Birgisson
Tel: +354 855 7760
Email: [email protected]
About Icelandic Salmon:
Icelandic Salmon is listed at the Euronext Growth. The Group is the 100% owner
of Arnarlax ehf, the leading farming company in Iceland with their head office
in Bíldudalur. The Group is fully integrated, from egg to the fish is delivered
to customers in the market, with control over all parts of the value chain.
See https://www.arnarlax.is for more information about the Group.
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
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