Iceland Seafood International Reports Doubling Profit Performance

Impressive First-Half Growth for Iceland Seafood International

In a robust demonstration of its business strength, Iceland Seafood International hf has reported substantial growth in its performance for the first half of 2025. The company's Normalised Profit Before Tax reached a remarkable €2.3 million, a significant leap from €1.1 million recorded in the corresponding period last year.

Sales Achievements Reflect Growth Trajectory

Sales for the first half of 2025 amounted to €233.8 million, marking a 10% increase from the €212.5 million noted in 1H 2024. This growth is indicative of the company's effective strategies and solid market positioning.

Net Margin and EBITDA Performance

The net margin for the first half of 2025 stood at €22.9 million, which represents an increase of €3.9 million compared to the previous year. Furthermore, the EBITDA saw a considerable rise, moving to €9.2 million from €5 million in H1 2024. This improvement signifies a strengthened operational efficiency.

Positive Net Profit Recovery

Sharing good news, the net profit for the company turned positive at €1.1 million, contrasting sharply with a loss of €0.7 million in the same period last year. Earnings Per Share (EPS) also showed resilience at €0.0357 per thousand shares, up from a negative €0.0238 in 1H 2024, reflecting the overall positive financial trends.

Structural Insights: Asset Management and Equity Growth

Despite total assets slightly declining to €251.5 million, a drop of €1.8 million, the company has improved its equity ratio to 30.2% from 28.6% at the end of Q2 2024. This indicates a better capital structure and financial health, providing a strong foundation for sustainable growth.

Outlook for Normalised PBT

For the full year 2025, the outlook for the Normalised Profit Before Tax remains optimistic, estimated between €7.5 million and €9.5 million. Iceland Seafood International is well-positioned to capitalize on existing market demands, especially in key species like cod and salmon, which continue to witness high demand and pricing stability.

Quarterly Performance Highlights

For the second quarter, group sales climbed to €114.6 million, a striking 17% increase year-on-year. This quarter indicated enhanced performance with a normalised pre-tax result recovering to €2 thousand, an improvement of €0.7 million compared to Q2 2024.

Division-Wise Insights

The VA S-Europe division reported sales of €52.9 million, reflecting a 3% rise from 2024's Q2. Sales for the first half grew by 3% in value and 1% in volume. The division maintained a normalised pre-tax profit of €2.2 million, consistent with the same period last year, thanks to strong sales of premium products, particularly cod.

Conversely, the VA N-Europe division achieved a sales total of €14.3 million for Q2, marking a 5% increase. The first half totalled €28.6 million, outperforming last year's €26.5 million. The market dynamic indicates potential stabilization in salmon prices, promoting a positive operational outlook.

CEO’s Perspective and Strategic Directions

Ægir Páll Friðbertsson, the CEO of Iceland Seafood International, shared insights on the market's performance, highlighting strong demand for cod paired with record prices. He noted that the ongoing geopolitical scenario has influenced pricing positively, especially for species sourced from the Barents Sea.

The CEO also emphasized the necessity for meticulous credit and inventory management due to inflationary pressures on consumers. While challenges persist, the company is strategically focused on enhancing its existing business models and expanding market share.

Strategic Growth Initiatives

Notably, the company aims to bolster its operations in Argentina through potential acquisitions, leveraging its existing expertise. Further, along with the growth of Icelandic salmon farming, opportunities for expanding sales through strategic initiatives are promising.

Interactive Investor Engagement

An electronic investor meeting is scheduled, allowing engagement with management as they unpack the Q2 and first half results. This meeting will be hosted online, focusing on transparency and direct communication with stakeholders.

Frequently Asked Questions

1. What were Iceland Seafood International's profit figures for 1H 2025?

The company reported a Normalised Profit Before Tax of €2.3 million, doubling from the previous year.

2. How did sales perform in the first half of 2025?

Sales reached €233.8 million, reflecting a 10% increase compared to 1H 2024.

3. What is the expected outlook for the rest of 2025?

The outlook remains positive, with expected Normalised Profit Before Tax between €7.5 million and €9.5 million.

4. How did division performance vary in Q2?

The S-Europe division reported steady sales growth, while the N-Europe division saw fluctuations due to market conditions.

5. What strategic initiatives is Iceland Seafood focusing on?

The company is enhancing its capital structure and exploring opportunities in the Argentine market, alongside growing its salmon farming operations.

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