Icelandic Salmon Q2 2024: Biological performance improving. New license awarded

20 August 2024

Icelandic Salmon is the parent company of Arnarlax, and other subsidiaries involved in salmon farming and processing in Iceland. The companies are collectively referred to as "Icelandic Salmon" or the "Group".

Operations

In the second quarter 2024, Icelandic Salmon harvested 700 tonnes compared to 88 tonnes in the same quarter last year. Harvesting volumes have remained low as the Group has prioritised growing biological assets and the volume also reflects the seasonal variation in growth due to temperatures.

The biological challenges seen in the beginning of the year continued to impact the Group’s operation in the second quarter, but various corrective measures implemented are beginning to show positive effects. Some biological irregularities continued in the second quarter, and a reassessment of stock value resulted, together, in a one-off charge of EUR 3.9 million during the period.

"Our highly committed team has worked hard to manage and mitigate the challenges that we have faced since the winter, and these efforts are now beginning to show results. Harvest volumes were low, but the quality of our salmon was good, and we were able to supply the market with a superior share of 90 percent in the quarter” said Bjørn Hembre, CEO of Icelandic Salmon.

The group reported revenues of EUR 9.7 million in the second quarter 2024, compared to 2.7 million in the second quarter 2023. The EBIT for the quarter was negative EUR 3.8 million, which includes the one-off cost mentioned above. Operational EBIT/kg was negative EUR 5.37. Adjusted for one-offs EBIT/kg was positive EUR 0.19.

Strategic milestones

During the quarter, Icelandic Salmon achieved a long-awaited strategic milestone by securing a 10,000-tonnes license for sterile salmon at three new sites in Ísafjarðardjúp, positioning the Group for future sustainable growth.

With this new license, Icelandic Salmon holds licenses with a total of 33,700 tonnes MAB.

Additionally, the Group was also granted a licence of 1,000-tonnes MAB at its smolt facility in Gileyri, and the group is awaiting potential approval for an additional 4,500 tonnes MAB in sea and two new sea-sites in Arnarfjörður.

Market update

Icelandic Salmon continues to see strong interest for its salmon.

The Group benefitted from good price achievements on its small share of downgraded fish. Iceland allows export of downgraded head-on gutted (HOG) fish which industry customers use as raw material for high-quality end products.

The contract share for the quarter was 59 %, with a negative effect on the result due to the high spot prices.

Outlook

For full year 2024, Icelandic Salmon reduce its volume guidance to 13,000 tonnes, due to biological challenges and delayed harvest.

The biological challenges reported in the first half of the year will affect harvest volumes in 2025, but no specific number for next year is given at this time.

"For the longer-term, we see growth potential of up to 36,000 tonnes on our existing licenses. With the quality of this year's smolt and recent improvements in biological performance, we are optimistic about reaching 26,000 tonnes in the coming years. Reaching 36,000 tonnes will depend on upcoming decisions on how to optimize our sterile licenses in the best way. I am confident in our ability to drive this growth and reach our full potential, to continue to supply the world with sustainable Icelandic salmon,” said Bjørn Hembre, CEO

Presentation details

Attached is the presentation for the second quarter 2024.

The Group’s CEO Bjørn Hembre and CFO Jónas Heiðar Birgisson will be presenting the Group’s results at 9:00 Icelandic time (11:00 CEST). The presentation will be held in English via webcast, please copy and paste the following link into your browser: www.arnarlax.webcast.is.

There will be a Q&A session after the presentations so you can send in questions during the presentation to questions@arnarlax.is

A recording of the presentation will be made available on the Group’s website.

After the presentation there is an opportunity to book one-on-one meeting either at our office in Kópavogur (Urðarhvarf 14) or on Teams between 10:15 - 15:00 Icelandic time, if interested, please send an email to hjortur@arnarlax.is

For further information, please contact:

CEO Bjørn Hembre
Tel: +354 620 1936
Email: bjorn@arnarlax.is

CFO Jónas Heiðar Birgisson
Tel: +354 855 7760
Email: jonas@arnarlax.is

About Icelandic Salmon:

Icelandic Salmon is listed at the Euronext Growth. The Group is the 100% owner of Arnarlax ehf, the leading farming company in Iceland with their head office in Bíldudalur. The Group is fully integrated, from egg to the fish is delivered to customers in the market, with control over all parts of the value chain.

See https://www.arnarlax.is for more information about the Group.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachments

• Q2_2024 - Icelandic Salmon Presentation - Final
• H1 2024 interim report - final