Positive Trends in Brim hf's Q3 2025 Financial Performance
Key Highlights from Q3 2025 Financial Results
During this quarter, Brim hf demonstrated impressive results, reporting a product sale of €111 million, an increase from €110 million in Q3 of the previous year. The profit for this quarter reached €29 million, a notable rise compared to €19 million in Q3 2024, showcasing the company’s commitment to growth.
Brim's EBITDA for the quarter was calculated at €42 million, attaining an EBITDA margin of 37.3%. Current assets showed a slight decrease, down by €13 million from the beginning of the year, positioning the total assets at €983 million by the close of this period. The company's equity stood at €505 million as of September 30, 2025, illustrating a solid equity ratio of 51.4%. This favorable financial standing reflects strategic operational decisions made by the management team.
Message from CEO Guðmundur Kristjánsson
In addressing the company’s performance, CEO Guðmundur Kristjánsson highlighted that the third-quarter results were impressive, primarily driven by successful mackerel fishing and processing operations. Increased prices for fish products also played a significant role in enhancing profit margins. Over the previous year, returning on equity reached an admirable 12%.
In September, Brim hf publicly announced its proposal to acquire the entire share capital of Lýsis hf, a move seen as strategically advantageous. This acquisition opens doors to synergies and opportunities not just for raw material sourcing from Lýsis but also for Brim in expanding its reach within the seafood value chain.
Operational Insights for Q3 2025
Brim's catch from its deep-sea vessels for Q3 amounted to 12,000 tons, slightly down from 14,000 tons the previous year due to a reduction in vessel count. One of the highlights for the year was the participation of the freezer trawler, Þerney, in mackerel fishing, achieving a catch of approximately 3,500 tons during the summer. The freezing trawler, Sólborg, however, underwent maintenance, impacting its operational capacity.
Moreover, the pelagic fleet began mackerel fishing in mid-June and continued through to the end of August, concluding the season with an impressive catch of 18,600 tons. Processing of this catch at the pelagic factory in Vopnafjörður was executed efficiently, tapping into strong market demand for mackerel products.
At the end of August, the fleet shifted focus towards fishing for blue whiting and subsequently Icelandic herring, achieving a total blue whiting catch of 10,300 tons and herring catch of 10,700 tons, which included 3,100 tons of Icelandic herring.
Market Dynamics and Future Expectations
The markets for fishmeal and oil showed slight improvements during the quarter, and sales of frozen herring products were consistent with prices seen in 2024. The strategic acquisition of Lýsis hf for a deal worth 24.7 billion krónur (approximately €173 million) reinforces Brim’s commitment to bolster its supply chain further. Approval from the respective boards, shareholder meetings, and competition authorities is pending to finalize the acquisition.
Looking at the financials for the first nine months of 2025, product sales totaled €295 million, an increase from €284 million the prior year. EBITDA before depreciation stood at €69 million, accounting for 23.2% of operating revenue, a significant leap from €47 million or 16.6% in the same period last year. These positive figures reflect Brim’s operational efficiency and strategic focus.
The company dealt with net financing costs of €16 million over the first nine months of 2025, up from €14 million in the previous year, demonstrating a need for continued financial management as operations expand.
Financial Health Overview
The total assets of Brim hf reached €983 million at the end of Q3 2025, comprising fixed assets of €809 million and current assets of €173 million. Equity amounted to €505 million, ensuring an equity ratio of 51.4%, improving from 49.1% at the end of 2024. The total debts held by the company were €478 million, exhibiting a decrease of €29 million since the start of the year.
Cash flow from operations for the first nine months registered at €23 million, an increase from €22 million noted in the same timeframe of 2024. Investment activities were positive by €4 million, while financing activities showed a negative impact of €53 million.
Shareholder Value and Company Projections
On September 30, 2025, the closing share price was set at 62.5 krónur, resulting in a market capitalization of 120 billion krónur. The company has a growing number of shareholders, reaching 1,628.
The interim report was duly approved during a management meeting of Brim hf, confirming adherence to international financial reporting standards. As a seafood company, Brim hf endeavors to optimize value creation while being fully attuned to environmental sustainability and innovation in the industry.
Frequently Asked Questions
What are Brim hf's main financial results for Q3 2025?
Brim hf reported product sales of €111 million and a profit of €29 million in Q3 2025, marking significant growth compared to the previous year.
What strategic move did Brim hf announce recently?
Brim hf announced its intention to acquire Lýsis hf, which is expected to enhance its supply chain and operational capabilities.
How much was Brim hf's equity at the end of Q3 2025?
The company's equity stood at €505 million, reflecting an equity ratio of 51.4%.
How has the operational capacity of Brim hf changed recently?
The operational capacity was slightly affected due to fewer vessels; however, overall catch efficiency improved with successful mackerel fishing.
What is the importance of the market dynamics for Brim hf?
Market dynamics significantly affect pricing and sales of seafood products, which Brim hf actively monitors to adjust its operational strategies accordingly.
