Iceland Seafood International's Impressive Q1 2025 Results
Continuing Operational Improvements and Near Completion of Refinancing
Iceland Seafood International hf has demonstrated a strong performance in Q1 2025, reflecting operational improvements and nearing completion of its refinancing efforts. The company reported significant profit growth compared to the same period in the previous year.
Profits and Revenue Growth
The profit before tax from regular operations was recorded at 333 million ISK (€2.3m), an increase from 275 million ISK (€1.9m) in Q1 2024, marking a 58 million ISK (€0.4m) increase. This growth in profitability is bolstered by revenue from operations, which reached 17.3 billion ISK (€119.3m) for the first quarter, reflecting a 4.8% increase from the same quarter last year.
The gross profit for Q1 2025 was reported at 1.8 billion ISK (€12.3m) compared to 1.5 billion ISK (€10.5m) for Q1 2024, and an EBITDA of 781 million ISK (€5.4m), up from 463 million ISK (€3.2m) in Q1 2024. The rolling 12-month EBITDA also rose significantly by 1 billion ISK, reaching 2.7 billion ISK (€18.5m).
Strong Balance Sheet Position
The company ended March 2025 with total assets of 37 billion ISK (€256.2m), which is an increase of 333 million ISK (€2.3m) from the start of the year. The equity ratio improved to 29.9% at the end of Q1 2025, compared to 26.8% at the end of the previous year’s first quarter. The forecast for 2025 suggests a pre-tax profit from regular operations is estimated between 1.1 – 1.4 billion ISK (€7.5m - €9.5m).
Regional Performance Insights
In Southern Europe, operational revenue for Q1 was reported at 8.3 billion ISK (€57.1m), marking a 2.3% increase compared to the same period in 2024. Despite adverse currency effects related to operations in Argentina, the regular profit before tax remained at 333 million ISK (€2.3m), an increase over the prior year’s figures.
In Northern Europe, operational revenues reached 2.1 billion ISK (€14.4m), an increase of 11% year-over-year, and profits from operations grew in Ireland to 11 million ISK (€76k), up by 16 million ISK (€111k). Conversely, losses at Iceland Seafood Barraclough were recorded at 18.5 million ISK (€128k), resulting in a total loss reflecting a stable performance in line with Q1 2024.
Strategic Focus and Future Outlook
Looking ahead, based on the Q1 results and prevailing trends, Iceland Seafood remains optimistic about its forecasts. The company expects to maintain robust pricing for cod throughout the year amidst historically low supply levels. Salmon pricing is anticipated to remain stable, albeit lower than previous projections, signaling diverse opportunities and challenges ahead.
CEO's Perspective on Future Challenges
Ægir Páll Friðbertsson, CEO of Iceland Seafood, highlighted potential challenges in the supply chain due to decreasing quota levels for cod globally, impacting availability. Furthermore, work on refinancing approximately half of the company's interest-bearing debts in the upcoming quarter is nearing completion.
The company aims to strengthen its operations by improving supply chain resilience, reducing interest costs, and continued strategic reviews to set a solid foundation for future growth.
On-going Refinancing Efforts
The refinancing process has progressed, with credit lines from Icelandic banks extended under favorable terms. In April, the company issued bonds worth 4 billion ISK, equivalent to €27.3m for a 3.5-year term, as part of an overall strategy to reduce interest expenses significantly.
Investor Relations and Engagement
While Iceland Seafood will not hold investor meetings for the first and third quarters, the company welcomes all inquiries regarding quarterly financial results via email. Upcoming investor meetings will be held following the release of the second and fourth quarters, where management will present and discuss key outcomes.
The company also encourages visits from parties interested in learning more about its operations, emphasizing a commitment to transparency and engagement with stakeholders.
Frequently Asked Questions
What were Iceland Seafood's profits for Q1 2025?
The profit before tax was 333 million ISK (€2.3m) for Q1 2025.
How did operational revenues compare to last year?
Operational revenues in Q1 2025 were 17.3 billion ISK (€119.3m), a 4.8% increase from Q1 2024.
What is the outlook for cod pricing this year?
Cod pricing is expected to remain high due to low supply levels throughout the year.
Who can investors contact for inquiries?
Investors can reach out via email for any questions regarding financial results.
What are the future plans for Iceland Seafood?
The company aims to strengthen its supply chain and reduce interest costs while pursuing strategic growth initiatives.
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