Report Publication Announcement • Nov 14, 2023
Report Publication Announcement
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CORRECTION: Q3 2023 results: A stable production quarter
CORRECTION: On slide 10 in the attached presentation the numbers in the subtitle
has been adjusted from 14,000t to 15,000t This is done to prevent
misunderstanding, the guide is 15,000t the same as is stated in a bulletpoint
and was said during the live presentation.
Bíldudalur, 9th of November 2023
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 third quarter 2023, Icelandic salmon resumed harvesting, following a
second quarter with limited harvest volume. The group harvested 4,040 tonnes in
the quarter, up from 3,804 tonnes in the third quarter 2022.
"Our team demonstrated strong adaptability and commitment during a time with
changing working conditions. Following a summer with limited harvest due to our
focus on biological growth, we started harvesting in July. In the third quarter,
total harvest came in slightly above the corresponding quarter last year, and
the biological performance for the quarter was good" said Bjørn Hembre, CEO of
Icelandic Salmon.
The group reported revenues of 42 million EUR in the third quarter 2023, up from
34 million EUR in the third quarter 2022. The EBIT for the quarter was positive
of 3.0 million EUR, resulting in an EBIT/kg harvest of EUR 0.73. The EBIT/kg
harvest was down from the corresponding quarter last year of EUR 0.99, due to
higher costs, partly offset by strong price achievement compared to market
prices.
The smolt stocking continued in the third quarter and the group achieved
operational improvements in smolt production. YTD the smolt weight is 236, up
36% from 2022.
"The quality of the smolt is good and the survival rate of smolts is high. We
see good effect of recent years' investment and operational focus in our smolt
production. "said Bjørn Hembre, CEO of Icelandic Salmon.
In October 2023, after the end of the third quarter, the group had to respond to
an unfortunate biological challenge in Tálknafjörður. The incident was soon
deemed a risk to animal health and the wellbeing of the fish, and a decision was
made to take out significant volumes (see more information in Outlook below).
Strategic milestones
In September, Icelandic Salmon held its first Capital market day, giving
stakeholders valuable insights into its operations and growth plans, and
successfully completed a dual listing on the NASDAQ First North exchange in
Iceland. This listing makes the company's shares more easily accessible for
Icelandic investors.
In August, Arnarlax signed a commitment letter for its first sustainability-
linked loan agreement, totalling EUR 100 million, with DNB, Danske Bank and
Arion Bank who stepped in with an overdraft facility and as security agent for
the loan agreement. The agreement was successfully completed in the beginning
of November.
Outlook
For the year 2023 as a whole, Icelandic Salmon expects to harvest 17,000 tonnes
of salmon, up from the previous estimate of 16,000 tonnes. The increase is a
result of growth beyond expected on our spring 2022 generation.
As mentioned above, Icelandic Salmon decided to take out significant volumes of
fish in Tálknafjörður. This will have a one-off impact estimated at around EUR
5-6 million on profits in the fourth quarter 2023. Harvest volumes for 2024 is
expected at 15,000 tonnes.
"For the longer term, we continue to see a potential for growth up to 26.000
tonnes on existing licenses supported by strong demand for sustainably farmed
Atlantic Salmon," said Bjørn Hembre, CEO of Icelandic Salmon.
The presentation 9th of November
Attached is the presentation for the third quarter.
The presentation will be held at Arion Bank headquarters in Borgartún 19, 105
Reykjavík, in the conference room Þingvellir today, 9th of November. The
conference room will be open from: 8:15 GMT (9:15 CEST) and company's CEO Bjørn
Hembre and CFO Jónas Heiðar Birgisson will be presenting the company's results
at 9:00 GMT (10:00 CEST), the presentation will also be available via webcast
on arnarlax.webcast.is (https://www.webcast.is/).
Questions may be asked after the presentation and there is also a possibility to
send questions to [email protected] (mailto:[email protected]) during
the presentation.
The presentation will be made available for replay on our
website, www.arnarlax.is (https://arnarlax.is/), shortly after the live event.
For further information, please contact:
CEO Bjørn Hembre
Tel: +354 620 1936
Email: [email protected] (mailto:[email protected])
CFO Jónas Heiðar Birgisson
Tel: +354 414 0609
Email: [email protected] (mailto:[email protected])
(mailto:[email protected])
About Icelandic Salmon: Icelandic Salmon is listed at the Euronext Growth. The
company is the 100% owner of Arnarlax ehf, the leading farming company in
Iceland with their head office in Bildudalur. The company 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 company.
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