Icelandic Salmon Rebounds: A Focus on Growth and Stability

Stabilizing Growth in Icelandic Salmon Production

Icelandic Salmon, the parent company of Arnarlax, has emerged from a challenging period with its sights firmly set on growth and stability. For those unfamiliar, this innovative company is a major player in the salmon farming and processing industry in Iceland, and its efforts have led to significant positive changes.

Overcoming Biological Challenges

Ending a difficult year, Icelandic Salmon took determined action to stabilize the biological conditions of its operations. After facing considerable challenges in early 2023, the Group achieved higher harvest volumes and weights while effectively controlling sea lice, an important factor in maintaining a healthy stock.

Improved Harvest Outcomes

In the fourth quarter of 2024, the company reported harvesting 6,455 tonnes of salmon, a slight decrease from the 7,219 tonnes harvested in the same timeframe the previous year. However, the increase in volumes from the lower levels seen previously in 2024 gives cause for optimism.

Financial Health and Sustainability Initiatives

Icelandic Salmon has secured an extension of its sustainability-linked financing agreement with DNB and Danske Bank, leading to an additional EUR 65 million funding boost. This step increases the total loan facility to EUR 160 million, strengthening the company's financial foundation for future growth.

Performance Metrics: A Closer Look

The Group’s operating income for Q4 2024 reached EUR 49.9 million, which reflects a decrease compared to EUR 51.6 million from the same period last year. This decline can primarily be attributed to reduced harvest volumes, affected by the previous biological challenges faced in 2023.

Profitability Insights

Operational EBIT for the fourth quarter recorded EUR 1.4 million, down from EUR 2.0 million in Q4 2023, primarily due to reduced volumes and the biological impact on harvested fish. However, adjusted EBIT/kg showed resilience with a value of EUR 0.31 after accounting for a one-off cost.

Strategic Developments and Future Prospects

As part of its strategy, the Group is actively working with authorities to reinstate a license for 10,000 tonnes MAB of sterile salmon. This license was originally revoked when the Icelandic Food and Veterinary Authority (MAST) failed to conduct a necessary and thorough assessment of the potential risks associated with fish diseases and parasites.

Market Position and Customer Demand

Icelandic Salmon continues to enjoy robust demand for its products, achieving noteworthy prices across various key markets, particularly in North America and Asia. The average harvest weight of 5.2 kg GWT surpasses the Norwegian market average, illustrating the Group's competitive edge in the industry.

Looking Ahead: Volume Guidance

While the challenges experienced in 2024 are likely to influence the harvest volumes for the first half of 2025, Icelandic Salmon maintains its guidance for a total harvest of 15,000 tonnes for the year. The bulk of this volume is anticipated in the latter half of the year, as conditions continue to improve.

Engagement with Stakeholders

CEO Björn Hembre and CFO Jónas Heiðar Birgisson will be presenting the Group's results and outlook to stakeholders, showcasing their commitment to transparency and communication in the industry. Furthermore, an interactive Q&A session will be available to address any inquiries from interested parties.

About Icelandic Salmon

Icelandic Salmon is listed on both Euronext Growth in Oslo and NASDAQ First North in Reykjavík. With a comprehensive control over the entire value chain, from egg to market delivery, the Group has established itself as the premier salmon farming entity in Iceland. Their unwavering commitment to quality and sustainability remains at the forefront of their operational strategy.

Frequently Asked Questions

What is Icelandic Salmon known for?

Icelandic Salmon is primarily recognized for its salmon farming and processing activities in Iceland, operating under its subsidiary Arnarlax.

How has Icelandic Salmon addressed previous challenges?

The company has undertaken significant efforts to stabilize its biological conditions, which included effective sea lice control and increasing harvest weights.

What are the financial highlights for Q4 2024?

In Q4 2024, Icelandic Salmon reported an operating income of EUR 49.9 million and harvested a total of 6,455 tonnes of salmon.

What is the future outlook for Icelandic Salmon?

Icelandic Salmon anticipates a total harvest of 15,000 tonnes for 2025, with volumes expected in the latter half of the year as conditions improve.

How can stakeholders stay informed about the company?

Stakeholders can stay updated through presentations and Q&A sessions hosted by the company's leadership, along with regular communication through their official channels.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

Contact Evelyn Baker privately here. Or send an email with ATTN: Evelyn Baker as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.