Icelandic Salmon (ISLAX) Q1 2025 earnings summary

Executive summary

• Q1 2025 was marked by biological challenges at sea, leading to early harvests at lower weights, increased mortality-related costs, and a significant drop in harvest volume to 1,100 tonnes from 2,800 tonnes year-over-year.

• Operations span the full value chain from smolt to sales, with four smolt facilities, eight farming sites in three fjords, and a harvest plant with 30,000-ton capacity.

• Strategic focus remains on rebuilding biomass, maintaining long-term growth plans, and maximizing existing potential.

• Temporary layoffs at the harvest plant were implemented to control costs but have since ended, with operations resumed.

• License for 10,000 tonnes MAB in Ísafjarðardjúp was revoked; applications for expansion and reinstatement are ongoing.

Financial highlights

• Q1 2025 operating income was EUR 10.4 million, down from EUR 27.5 million in Q1 2024.

• Operational EBIT for Q1 2025 was negative EUR 3.0 million, compared to negative EUR 0.5 million in Q1 2024; EBIT/kg (excluding one-offs) was negative EUR 1.22.

• Q1 2025 EBITDA was negative EUR 3 million, down from negative EUR 0.2 million in Q1 2024, mainly due to low harvest volume and higher cost per kilo.

• Total assets decreased by EUR 3.8 million, driven by a EUR 3.5 million reduction in the fair value of biological assets.

• Net interest-bearing debt rose by EUR 11 million to EUR 98 million, reflecting ongoing investments and biological build-up.

Outlook and guidance

• 2025 harvest volume guidance maintained at 15,000 tonnes, with higher harvest expected in Q2 and a backloaded profile for the year.

• Full-year 2025 cost level expected to be lower than 2024, driven by increased volume and lower feed costs.

• First half of 2025 expected to remain challenging with low volumes and high costs; improvement anticipated in H2 2025.

• Contract share expected at 1% in Q2 and around 10% for FY 2025.

• Long-term ambition to increase production to 26,000 tonnes per year within existing licenses.