Icelandic Salmon (ISLAX) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw stabilized biological conditions, higher harvest volumes and weights, effective sea lice control, and strong price performance in North America and Asia.

• Full year 2024 harvest was 11,676 tons, down from 17,919 tons in 2023, due to biological challenges in late 2023 and early 2024.

• EBIT for Q4 was EUR 1.4 million, impacted by higher costs per kilo and a one-off EUR 600,000 cost from a pox virus outbreak at a smolt facility.

• The company secured an additional EUR 65 million in sustainability-linked financing, raising total loan facilities to EUR 160 million.

Financial highlights

• Q4 2024 harvest volume was 6,455 tonnes, with a superior share of 94%, and average harvest weight of 5.2 kg, outperforming the Norwegian market average.

• Q4 2024 operating income was EUR 49.9 million, down from EUR 51.6 million in Q4 2023.

• Operational EBIT for Q4 2024 was EUR 1.4 million; EBIT margin was 3%, and operational EBIT per kg (excluding one-offs) was EUR 0.31.

• Net interest-bearing debt including leasing was EUR 86.8 million at year-end, down EUR 2.5 million from the previous period.

• Equity ratio improved to 57% at year-end 2024.

Outlook and guidance

• 2025 volume guidance maintained at 15,000 tonnes, with most harvest expected in H2 2025.

• Significant biomass growth and improved MAB utilization anticipated in 2025.

• Cost levels expected to be lower in 2025 than 2024, driven by higher volumes and lower feed costs.

• Contract share expected at 10% for Q1 and full year 2025.

• Long-term growth potential up to 26,000 tonnes on existing licenses.