Icelandic Salmon (ISLAX) Q3 2024 earnings summary

Executive summary

• Operations stabilized in Q3 2024 after earlier biological challenges, with improved biological control, increased smolt releases, and investments in smolt facilities supporting future growth.

• Harvested 1,750 tonnes in Q3 2024, down from 4,040 tonnes in Q3 2023, due to MAB optimization and prior sea lice issues.

• EBIT for Q3 2024 was -EUR 3 million, impacted by low volumes, high costs from underutilized capacity, and a one-off mortality cost of EUR 0.4 million.

• Maintains strong stakeholder engagement and reiterates long-term growth ambitions.

Financial highlights

• Q3 2024 revenue was EUR 14.3 million, down from EUR 42.0 million in Q3 2023; YTD 2024 operating income was EUR 51.6 million.

• EBIT for Q3 2024: -EUR 3 million; EBIT margin was -21%, and EBIT/kg was -EUR 1.71 (or -EUR 1.46 excluding one-offs).

• Equity ratio decreased to 54% at the end of September 2024.

• Net interest-bearing debt, including lease liabilities, rose to EUR 89 million, mainly from increased working capital and biological asset buildup.

• Paid EUR 1 million in taxes during the period, including EUR 860,000 in resource taxes.

Outlook and guidance

• Volume guidance for 2024 is 13,000 tonnes, with a significant increase expected in Q4.

• 2025 volume guidance is 15,000 tonnes, with most harvest in the second half; 2026 volumes expected to normalize.

• Long-term ambition to reach 26,000 tonnes per year within current licenses.

• Contract share expected at 11% for Q4 and 12% for full year 2024.

• Underlying costs expected to decrease in Q4 due to better capacity utilization and operational improvements.