In this article:
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.