Year in Review

The year 2024 was a turnaround year for Iceland Seafood operations. All divisions within the Group returned a profit during the year after a very difficult 2023. It was gratifying to see these operational results in my first full year of work at the company and to perceive the opportunities within the company due to its highly qualified employees, loyal suppliers and strong customer base. During the first part of the year, we experienced fluctuations in raw material prices and uncertainty in our main markets. The price of salmon was high until mid-year and then levelled off. It was stable throughout the rest of the year, improving the bottom line for our salmonrelated operations. Similarly, there were changes in the market for white fish in the last quarter of the year; demand increased, and the quarter’s performance was one of the best the company has ever had in that quarter. The increased demand for white fish products during the quarter can be explained, among other things, by the reduced allocation of cod quotas in the Barents Sea for 2025, and there is every likelihood that this demand will continue through 2025 and beyond.

This turnaround in Iceland Seafood operations in 2024 is very positive, given that the company was selling complex inventories that were generating negative earnings, in addition to the fact that interest costs rose significantly between 2023 and 2024, amounting to approximately €3.6 million. This increase in interest costs occurred in parallel with the increase in interest rates in our main markets, but as 2024 progressed, we saw interest rates begin to ease, which is positive for the company.

Total sales in 2024 were €443.2m, up 3% in value from 2023.

The VA S-Europe division’s sales of €215.4 million were on par with the prior year’s value and slightly decreased in volume. Sales of Ahumados Dominguez were 4.5% higher in value and 1% higher in volume compared to 2023 and delivered the best year since the company was acquired in 2021. Our Argentinean operation, Achernar, was on par with last year’s profit of €0.6m.

Despite lacking the capelin season, the S&D division had another solid year. The demand for Icelandic products remains strong. Sales of cod, haddock, saithe, and redfish were good this year, and herring was on par with last year.

The VA-N division’s full-year sales of €57.3m were 6% up on last year. Salmon prices were favourable in the latter half of the year, and strong Christmas sales helped deliver a solid outcome. Division sales have been growing in Euro terms and volume despite increasing competition.

Normalised profit before tax (PBT) was €7.4m, compared to €0.7m in 2023, a very positive turnaround from previous years. Total assets at the year’s end of €253.9m were €0.9m lower than at the beginning, driven by a reduction in inventories.

Iceland Seafood is built on a solid foundation of experienced and dedicated employees who have faced and overcome many challenges. Looking ahead to 2025, we see several opportunities to strengthen the business. The changes in the supply chain, especially with reduced cod quotas, could open up new areas for growth as we adjust to shifting demand. Additionally, the need to refinance about half of our interestbearing debt, coupled with easing interest rates, could allow us to secure more favorable terms. With a strong base to build on, our focus will be on strengthening the supply chain, making the most of these opportunities, and carefully refining our strategy for continued success.