8 August 2022

Iceland Seafood’s outlook range for 2022 Normalised PBT revised to €9.0-14.0m

Draft 1H 2022 interim accounts indicate a loss before tax of €1.8m in the period

As previously communicated, results in Q2 were significantly impacted by rapid and substantial price increases of all input factors in the period

The IS UK operation is impacted by difficult external situation, it will take longer and cost more than previously estimated to stabilize the business

Good performance of the Value Added S-Europe and the Sales & Distribution divisions continued in the period 

Draft results of Iceland Seafood international interim accounts for 1H 2022 indicate a loss before tax of €1.8m.  As expected and communicated when Q1 2022 results were published, significant and rapid price increases in all areas negatively impacted results in Q2, especially in the Value Added N-Europe division.  That division mostly relies on sales to retail customers but it takes longer time to pass on price increases to customers in retail than foodservice.  The sharp salmon price increases, especially impacted results in Ireland in the period.  These prices have now leveled off, at the same time cost increases have been passed on to customers.  Therefore, the performance of the Irish operation is expected to be back to normal levels from Q3 2022. 

The operation of IS UK was loss making in the period and it has become clear it takes longer and cost more than previously estimated to stabilize the UK business. Challenges in the external environment continued to impact the business in the period, with the outbreak of Omicron Covid19 in the beginning of the year which had disruptive impact on both operations and logistics  and price increases of various input factors during the whole period. The new but experienced management team is stabilizing the operation, key tasks are to rectify sales prices and to grow the business with both current and new customers.   Based on current outlook it is expected that operation will be loss making during 2H 2022, but that breakeven level will be reached in 1H 2023. 

The good performance of both Sales & Distribution and the Value Added S-Europe divisions continued in the period.  IS Iberica performed especially well, helped by our strong market position in S-Europe.  The demand for both cod products from Iceland and Argentinean shrimp was good in the period, resulting in both strong sales and margins. The operation of Ahumados Dominguez was negatively impacted by the sharp price increase of salmon, especially in Q2. But as in Ireland, the performance of Ahumados Dominguez is expected to be back to normal levels from Q3.

Based on revised business forecasts for the reminder of the year and especially the situation in UK, the Outlook range for Normalised PBT is now amended to €9.0 - 14.0m, from previous outlook range of €11.0-16.0m.

Iceland Seafood will publish its 1H 2022 results after closing of markets on August 17th. At the same day, at 4.15pm the company will host a meeting for investors and market participants, where management will present and discuss the results.  The meeting will be held at the company’s premises at Köllunarklettsvegur 2, 104 Reykjavík. The meeting will also be webcasted live in Icelandic, a link to the webcast and investors presentation will be provided before the meeting commence.

Streaming of the meeting:

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