21 March 2018

Iceland Seafood International hf.: 2017 Full Year Results

Strong year with Pre-Tax Profit growth of 6.5% in 2017, with excellent outlook for 2018

  • Full year revenues of €249m up compared with €246m in 2016
  • Net margin of €19.5m up €0.5m from 2016
  • Normalized PBT of €3.5m up 6.5% 
  • Total divisional PBT, pre Head office costs, of €5.0m
  • Retain earnings after tax for the year of €2.6m up 1% 
  • Total assets increase €13.2m – Net Debt increase only €4.1m
  • ISI acquires Oceanpath Ltd. in Ireland on March 14th 2018
  • Significant profit growth projected in 2018

Helgi Anton Eiríksson, CEO

“These are excellent results for Iceland Seafood International considering the challenges of the first half of 2017 with the 10 week fisherman’s strike in Iceland.  The business responded strongly in the second half with Pre-Tax Profit growth in the period of 13.6% year-on-year.  Both operating divisions contributed meaningfully to these results.  We continue on our strategic path of focusing and investing in our value creative activities and margin growth throughout the Group.

Our Value Added division, which in 2017 included our two operations in the UK and the business in Spain, saw profits grow €200k year-on-year. We are pleased to see the strong performance of our retail activities in the UK, a business that completed its capital investment program in the period. Overall the Value Added division contributed normalised profit before tax of €3.5m.

Our Sales and Distribution division saw its second half Pre-Tax Profit performance improve 28% year-on-year after a strike affected first half.  This result was very pleasing with significant new business won within the fresh segment in the US, Frozen at Sea fillet sales and another strong year for our French business.  Overall the Sales and Distribution division delivered normalised profit before tax of €1.5m.

Total assets increased by €13.2m year-on-year mainly related to increased retail sales which have continued into 2018.  Net debt increased €4.1m year-on-year, with the remainder of the asset increase financed by profits and non-interest-bearing debt.  

In line with the Group’s strategy of strong organic growth and strategic acquisitions, we were exceptionally pleased to announce on March 14th the acquisition of Oceanpath Limited in Ireland.  Oceanpath is the largest fresh seafood processor to Irish retailers, offering fresh and smoked seafood to retail customers and wholesalers.  The Oceanpath group operates two factories, Oceanpath which sources, processes and sells fresh and frozen seafood and Dunn's of Dublin established in 1822, an iconic premium retail brand best known for its smoked salmon products.  With Iceland Seafood’s global sourcing and manufacturing base and Oceanpath’s focus on manufacturing of premium seafood products, we believe this first acquisition since ISI listed on Nasdaq First North is a great value creator for the Group.  

This acquisition positively impacts our outlook for 2018, which in combination with our existing divisions’ strong organic growth, leads to an anticipated annualised PBT of €5.4m – 6.1m. With Oceanpath included in the Group’s results from 15th March 2018 we anticipate a normalised PBT for 2018 of €5.0 - €5.7m for 2018, up 40 – 60% on the positive 2017 performance.”

Investor Meeting

On 22nd March 2018  at 8.30 am, Iceland Seafood International hf will host a meeting for market participants and investors, where management will present and discuss the full year results.  The meeting will be held at Hilton Reykjavik Nordica.  

Disclaimer

This announcement is provided 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.

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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