Year in Review

“The year 2025 was a strong operating year for Iceland Seafood, building on the turnaround achieved in the previous year. All divisions within the Group delivered strong results during the year despite various external challenges, highlighting the business’s resilience and competitiveness. This performance strengthens my belief that opportunities lie ahead that will serve the Company well in the future.

In 2025, prices for cod, related species, and mackerel increased, while demand remained stable in our key markets. Salmon prices, on the other hand, were lower and more stable than in the previous year, which had a positive impact on our salmon‑related operations. Inflation declined in the EU, while rising slightly in the United Kingdom and the United States, as interest rates began to decrease across several of our main markets. Overall, these factors had a generally positive effect on purchasing power during the year.

Increased demand for whitefish products and higher prices during the year were driven by reduced cod quota allocations in the Barents Sea for 2025 and the ban on Russian fish. We assess that demand will remain strong in 2026. Prices are likely to remain high unless supply increases.

One of the major milestones of the year was the successful refinancing of the parent company, ISI hf., which strengthens the Company’s financial position, significantly reduces refinancing risk, and lowers interest expenses in the coming years.

During the year, the Company also invested in a freezer trawler operation in Argentina. This strengthens our position within the value chain, as fishing and processing are carried out under one roof. The investment also enables us to increase supply and broaden the product range of high‑quality wild‑caught shrimp for both existing and new customers.

The growth of salmon farming in Iceland is also a positive development, and we have commenced sales and marketing of Icelandic salmon through our distribution network with the aim of further strengthening operations. The expansion of Icelandic salmon farming creates opportunities for the Company to work closely with Icelandic farming companies and leverage our strong sales network to promote Icelandic salmon in key markets and differentiate it in the marketplace.

In 2025, through the concerted efforts of dedicated employees, reliable suppliers and customers, we succeeded in improving and strengthening the operations of our existing business units. This provides a strong foundation for the future and confirms that clear strategic decisions are delivering positive results for the Company.”

The VA S-Europe division’s total sales for the year amounted to €212.9 million, down by 1% in value and down 2% in volume compared to 2024. The division’s pre-tax profit rose to €8.2 million, up from € 5.8 million in 2024. Iberica Group´s sales for the year 2025 decreased by 1% in value and 2% in volume. Ahumados delivered a strong performance in 2025, with sales value up 1% and volumes increasing by 4%. It was by far the company’s best year since its acquisition by Iceland Seafood in 2021, achieving a PBT of €2.4 million.

The VA N‑Europe division’s total sales for 2025 reached €63.3 million, an 11% increase from €56.8 million in 2024. Lower‑than‑expected salmon prices in 2025 had a positive effect on operations, while elevated whitefish prices created challenges, exerting opposing pressures on both sales and overall operational performance. The division’s pre‑tax profit in Q4 was €1.0 million, down from €1.8 million in Q4 2024. Pre‑tax profit for 2025 amounted to €2.4 million, slightly lower than €2.5 million in 2024.

The S&D division’s total sales for 2025 amounted to €221.5 million, a 22% increase from €181.0 million in 2024. Pre-tax profit tax for the full year 2025 was €4.4 million, compared to €3.9 million in 2024. The year was characterised by high prices and strong demand for cod products. Mackerel prices were very high during the year, alongside rising prices across almost all whitefish species, while the supply of capelin was virtually non‑existent. Reductions in cod quotas and tariff issues in the United States further increased uncertainty in that market. Despite various challenges in the external environment, the Icelandic unit delivered a strong result, thanks to close cooperation with Icelandic producers.

Looking ahead to 2026 and building on our ongoing strategy work started in the fall of 2024, we see several opportunities to strengthen the business. We need to secure our cod supply to be a top league player in a highly competitive market. Another opportunity is that production of Icelandic Salmon is growing, and we see an opportunity to be part of that growth by leveraging our existing sales channel to market Icelandic Salmon in close collaboration with the Icelandic Salmon farmers. The third pillar is our Argentiniean business, where we invested in trawlers this year, which we expect will strengthen and grow our operations there. Finally, we are constantly working to improve the efficiency of our factories, making them more competitive and cost-effective. With these objectives, a strong employee base and good infrastructure at the forefront, we should be well equipped to compete in a highly competitive market where supply shortages and high prices have persisted for some time.