Icelandic Salmon – Ending a challenging year with a stable biological situation

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Icelandic Salmon AS
Icelandic Salmon AS

Bíldudalur, 18 February 2025

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

With determined efforts in the fourth quarter of 2024, Icelandic Salmon stabilized the biological conditions in the sea after having experienced significant challenges in the winter-spring 2023‑24, resulting in higher harvest volumes and weights, and good sea lice control.

To further strengthen the Group’s financial position, the group has agreed on an extension to its sustainability-linked financing agreement with DNB and Danske Bank. This agreement provides additional funding of EUR 65 million, increasing the total loan facility to EUR 160 million.

In the fourth quarter of 2024, operating income was EUR 49.9 million, compared to EUR 51.6 million in the fourth quarter of 2023. The decline in revenues year-over-year was mainly driven by lower harvest volumes.

Operational EBIT for the quarter was EUR 1.4 million, compared with EUR 2.0 million in the prior-year period. The decline was driven by lower volumes and cost levels on harvested fish being affected by the biological challenges from last winter. The EBIT/kg for the quarter ended at EUR 0.22. Adjusted for the one-off cost, EBIT/kg was EUR 0.31.

Operations

In the fourth quarter of 2024, Icelandic Salmon harvested 6,455 tonnes, compared to 7,219 tonnes in the same quarter last year. Harvest volumes have increased from the low levels of the previous quarters in 2024.

“Our team’s dedicated efforts have enabled us to end a challenging year on a positive note. We stabilized the biological situation, strengthened sea lice control, and achieved good growth in our biological assets. With increased harvest volume and harvest weight, solid price achievement, and strong performance on smolt released into sea, we are on the right path," said Björn Hembre, CEO of Icelandic Salmon.

Strategic events

The Group continues to work closely with the authorities to reinstate a license for 10,000 tonnes MAB of sterile salmon in Ísafjarðardjúp, which was revoked in Q3. This happened because the Icelandic Food and Veterinary Authority (MAST) did not provide a necessary comprehensive, weighted assessment of the potential risk of the spread of fish diseases and parasites before the license was issued.

Efforts to establish larger sites for improved MAB utilization continue, with extension of several sites in Arnarfjörður under review. The process has been delayed, and a final decision is not expected before the end of 2025. Additionally, a 4,500-tonne application in Arnarfjörður remains under review.


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