Iceland Seafood International (ICESEA) Q3 2024 earnings summary

Executive summary

• Group sales for 9M 2024 reached €314m, down 1.3% year-over-year, with mixed performance across divisions and improved margins despite high salmon and cod prices.

• Branded products now account for 39.5% of total sales, supporting higher margins and business sustainability.

• Normalized profit before tax (NPBT) reached €2.5m, up €4.4m from the prior year, despite higher finance costs and volatile salmon prices.

• The sale of the UK operation resulted in significant one-time costs and a loss from discontinued operations.

• Equity at 30 September 2024 was €71.4m, with an equity ratio of 29.9%.

Financial highlights

• Revenue for 9M 2024 was €314m, down from €318.1m in 9M 2023.

• Normalised EBITDA for 9M 2024 was €9.0m, up from €4.6m year-over-year.

• Net loss narrowed to €1.5m in 9M 2024 from €20.7m in 9M 2023, mainly due to discontinued UK operations.

• Net interest-bearing debt at €103.5m; funding headroom at €37.9m.

• Interest costs increased by €3m year-over-year, impacting financial results.

Outlook and guidance

• Full-year Normalised PBT is expected in the €5.0–7.0m range.

• Management is seeking refinancing options ahead of April 2025 credit facility expiry and June 2025 bond maturity.

• Cod prices are forecasted to remain high due to quota cuts and US ban on Russian fish; salmon prices are stable but may rise in late December.

• Inflation is declining in major markets, and interest rates are falling in Europe, UK, and USA but remain high in Iceland.

• All divisions are expected to meet budget, with no major sector changes anticipated for the remainder of the year.