29 August 2018

Iceland Seafood International hf.: 1H 2018 Results

Exciting times at ISI: Excellent 1H results with normalised pre-tax profit up 71% through good underlying profit growth and the Oceanpath Irish acquisition positively impacting the group. Outlook for year strong with Spanish acquisition of Icelandic Iberica creating significant opportunity for future profit growth.  

  • Revenues for 1H 2018 of €150m, up 29% from 1H 2017
  • Net margin of €11.7m up €2.2m, from 1H 2017
  • Divisional normalised PBT (pre HQ) of €3.2m, up €1.1m from 1H 2017 
  • Normalised PBT of €2.2m was €0.9m up from 1H 2017 
  • Total assets increase of € 31.3m - Net debt increase of €18.3m
  • ISI acquires Oceanpath Limited in Ireland on March 15th 
  • ISI signs a sales and purchase agreement on August 1st to acquire Solo Seafood/Icelandic Iberica
  • Proforma pre-tax profit, including full year Oceanpath and Solo Seafood acquisitions of €9.6-10.6m pre synergy benefits

Helgi Anton Eiríksson, CEO

„It is very pleasing to report strong results for the first half of the year and a successful completion of the acquisition of Oceanpath in line with our announced strategic intent of investing in value added companies internationally.  Oceanpath is performing strongly and contributing well to our group.  This year we have also agreed terms to acquire Solo Seafood, the parent of Icelandic Iberica and its subsidiaries.  This acquisition is transformational for ISI and takes the group, on a full year basis, to over €400m of revenue and in excess of €10m in pre-tax profits, pre- synergy benefits and the benefit of a more strongly integrated group with the large seafood companies of Fisk, Nesfiskur and Jakob Valgeir becoming signficant shareholders of ISI.  The transaction is expected to complete in mid to late September and will see ISI at completion operate 7 value added factories globally.

In the 1H we saw strong growth in our value-added division which includes our two UK businesses, the business in Spain and Oceanpath in Ireland.  In the period the Value-added division saw sales growth of 36% to €78m and normalised pre-tax profit growth of 71% to €2.7m driven by new listings, higher activity levels and the inclusion of Oceanpath.  

Our Sales and Distribution division which includes our businesses in Iceland, France, Germany and USA saw a positive sales increase of €15m to €92m, after 2017 being affected by the strike, normalised pre-tax profit of €0.5m in line with plans.  The 1H provides a solid platform for the stronger 2H which benefits from higher pelagic sales activity.

Year on year total assets increased by €31.3m and Net debt by €18.3m reflecting the increased sales activities and the acquisition of Oceanpath.

The acquisition of Solo Seafood/Icelandic Iberica (post completion deliverables anticipated to be finalised in mid to late September) will positively impact our profit outlook for 2018 to €6.1-6.6m.  Assuming combined 12-month operating effect of acquired businesses, in combination with our existing divisions strong organic growth performance leads to a proforma annualised PBT of €9.6-10.6m, which would triple our groups normalised pre-tax profit since listing in 2016.

Investor meeting

On August 30th at 8.30 am (GMT), Iceland Seafood International hf will host a meeting for market participants and investors, where management will present and discuss half year results.  The meeting will be held at Hilton Reykjavík Nordica, Suðurlandsbraut 2, 108 Reykjavík. 

Disclaimer

This announcement is furnished and intended for European market participants and should be viewed in that manner.  

Any potential forward looking statements contained in this announcement are reflective of management’s current views on future events and performance, whilst the views are based on positions that management believes are reasonable there is no assurances that these events and views will be achieved. Forward looking views naturally involve uncertainties and risk and consequently actual results may differ to the statements or views expressed.

Financial Calendar

Publication of 2018 Annual results – March 27th 2019

For more information:

Iceland Seafood International hf.                                                   +354 550 8000

Helgi Anton Eiríksson, Chief Executive Officer

Lee Camfield, Chief Operating Officer

Reynir Jonsson, Chief Financial Officer 

http://www.icelandseafood.com/Investors

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