Iceland Seafood International (ICESEA) Q2 2024 earnings summary

Executive summary

• Group sales for 1H 2024 were €212 million, down 5% year-over-year, mainly due to high salmon and cod prices, reduced demand, and absence of capelin quota.

• Despite lower sales and higher interest rates, net margin and normalized PBT improved, with normalized PBT at €1.1 million, up €1.9 million year-over-year.

• Net loss for 1H 2024 was €0.7 million, a significant improvement from a €15.3 million loss in 1H 2023.

• Net interest-bearing debt increased to €105.2 million at June 2024, mainly due to inventory and receivables financing.

• Management is actively seeking refinancing options as key credit facilities and bonds mature in 2025.

Financial highlights

• Net margin for 1H 2024 was €19.1 million, up from €16.9 million in 1H 2023.

• Normalized EBITDA reached €5.4 million, up from €3.4 million year-over-year.

• Net finance costs rose to €4.2 million, up €2.2 million year-over-year, but positive FX movements offset most of the impact.

• Equity ratio at 28.6% as of June 2024, nearly unchanged from previous periods.

• June sales hit a historical low, but July showed signs of recovery.

Outlook and guidance

• Full-year profit before tax guidance remains at €5–7 million from ongoing operations, assuming stable cod and salmon prices.

• November and December are critical for annual performance.

• Cod prices expected to remain high due to quota reductions and US ban on Russian fish; salmon prices stable with slight increase expected later in the year.

• Inflation is easing in major markets, and interest rates are starting to decline in Europe.