Iceland Seafood International (ICESEA) Q2 2024 earnings summary

Executive summary

• Group sales for 1H 2024 were €212m, down 5% year-over-year, mainly due to high salmon and cod prices, reduced demand, and absence of capelin quota.

• Normalized Profit Before Tax (NPBT) improved to €1.1m, up €1.9m year-over-year, despite higher salmon prices and finance costs.

• Net debt increased to €105.2m at June 2024, €7.8m higher than year-end 2023; equity stood at €72.5m with an equity ratio of 28.6%.

• Management is actively seeking refinancing options as key credit facilities and bonds mature in 2025.

• All divisions are expected to perform according to budget, with a positive outlook for the second half of the year.

Financial highlights

• Net margin for 1H 2024 was €19.1m, up from €16.9m in 1H 2023.

• Normalized EBITDA reached €5.4m, up from €3.4m year-over-year; adjusted EBITDA was €5.1m.

• Net profit for 1H 2024 was a loss of €0.7m, a significant improvement from a €15.3m loss in 1H 2023.

• Revenue for 1H 2024 was €212m, down from €222.3m in 1H 2023.

• Net finance costs rose to €4.2m, compared to €2.0m last year.

Outlook and guidance

• Outlook for 2024 Normalised PBT is €5.0–7.0m, with the higher end dependent on improved economic conditions in H2.

• Management is focused on refinancing ahead of the April and June 2025 maturities of the main credit facility and bond.

• The company continues to monitor market conditions, especially raw material prices and quota allocations, to manage profitability.

• Cod prices expected to remain high due to quota reductions and US ban on Russian fish; salmon prices stable with slight increase expected later in the year.

• Inflation is easing in major markets, and interest rates are starting to decline in Europe.