In This Article:
Bíldudalur, 18 November 2024
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".
In the third quarter, Icelandic Salmon stabilised conditions following biological challenges from last winter and spring. Harvest volume remained low, impacting the quarterly results. However, the Group’s focus on biomass growth has built a solid foundation for recovery and future growth.
With new sea lice control measures, increased smolt releases, recent investments in smolt facilities, and active stakeholder engagement, the Group has taken important steps forward. The Group reiterates its long-term growth ambitions, which are well aligned with authorities, lenders and other key stakeholders.
For the third quarter of 2024, the group reported revenues of EUR 14.3 million, compared to 41.9 million in the third quarter 2023. EBIT for the quarter was negative EUR 3 million, compared with positive EUR 3 million in the prior-year period.
The year-over-year decline was driven by lower volumes and ongoing biological challenges from earlier in the year, which led to a one-off cost of EUR 0.4 million. The EBIT/kg for the quarter was negative EUR 1.71. Adjusted for the one-off cost, EBIT/kg was negative EUR 1.46.
Operations
In the third quarter 2024, Icelandic Salmon harvested 1,750 tonnes compared to 4,040 tonnes in the same quarter last year. Harvest volumes have increased from the low levels seen in the previous quarter, but remained at a low level as the Group prioritised the build-up of biological assets.
“Consistent efforts by our entire team have driven operational improvements across our value chain, from sea to land. We have focused on growing our biological assets. Strong smolt performance, a reduction in underlying costs in the beginning of Q4, and solid price achievement underscores that we are on the right way,” said Björn Hembre, CEO of Icelandic Salmon.
Strategic events
In October this year, the license awarded in Ísafjarðardjúp was revoked because the Icelandic Food and Veterinary Authority (MAST) had not provided a sufficiently comprehensive, weighted assessment of the potential risk of the spread of fish diseases and parasites before the license was issued. The Group is collaborating closely with the authorities to remediate the situation.
Market update and outlook
Icelandic Salmon continues to see strong demand for its salmon. It achieved high prices for its products across key markets. The Group’s superior share was as high as 95% in the quarter. In North America, the Group achieved especially strong results, with prices significantly exceeding market prices.