Iceland Seafood International (ICESEA) Q4 2023 earnings summary

Executive summary

• Continuing-operation sales rose 2% to €429.9m, while normalized PBT fell to €0.7m from €12.1m amid difficult markets and higher finance costs.

• Full-year net loss was €20.3m, including an €18.8m loss from discontinued UK operations and the disposal.

• Sales strengthened in Q1 but slowed from Q2; April–December sales declined 3% YoY as customer demand and seafood prices weakened.

Financial highlights

• FY sales were €429.9m versus €420.7m; Q4 sales were €111.8m versus €101.1m, up 11% YoY as sales improved across all three divisions.

• Gross profit was €64.4m versus €71.0m; IFRS operating profit was €7.5m versus €14.7m, and normalized EBITDA was €11.5m versus €18.3m.

• EBITDA from continuing operations was €11.7m versus €18.2m; normalized PBT was €0.7m versus €12.1m.

• Q4 continuing-operation operating profit was €6.0m versus €5.0m, with a €5.5m net loss; the total Q4 net result was €0.4m versus a €15.8m loss in Q4 2022.

• Operating cash flow was €11.2m versus cash use of €21.8m in 2022, supported by lower inventory and receivables.

Outlook and guidance

• 2024 normalized PBT outlook is €5.0–7.0m; the upper end depends on economic improvement in H2.

• Difficult economic conditions are expected to weigh on demand in coming months, with signs of improvement from midyear as interest rates ease.

• Strategic review is ongoing, with the outcome expected to be communicated to stakeholders in Q2.