Icelandic Salmon (ISLAX) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw stabilized biological conditions, higher harvest volumes and weights, and effective sea lice control, with strong price performance in key markets, especially North America and Asia.

• Full year 2024 harvest was 11,676 tonnes, down from 17,919 tonnes in 2023, due to biological challenges in late 2023 and early 2024.

• Q4 harvest volume was 6,455 tonnes, down from 7,219 tonnes in Q4 2023, reflecting MAB optimization and recovery from earlier challenges.

• The company operates throughout the value chain, with four smolt facilities and eight farming sites, present in both domestic and global markets.

• EBIT for Q4 was EUR 1.4 million, compared to EUR 2.0 million in Q4 2023, impacted by lower harvest volumes and earlier biological challenges.

Financial highlights

• Q4 2024 operating income was EUR 49.9 million, down from EUR 51.6 million in Q4 2023, mainly due to lower harvest volumes.

• Operational EBIT margin was 3% in Q4 2024, compared to 4% in Q4 2023.

• Operational EBIT per kg (excluding one-offs) was EUR 0.31 in Q4 2024, down from EUR 1.00 in Q4 2023.

• Net interest-bearing debt including leasing was EUR 86.8 million at year-end, down EUR 2.5 million over the period.

• Positive EBITDA of EUR 5.5 million and improved working capital in Q4 2024.

Outlook and guidance

• 2025 volume guidance maintained at 15,000 tonnes, with most harvest expected in H2 2025 and significant biomass increase anticipated.

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

• Long-term ambition is to reach 26,000 tonnes per year within existing licenses and regulatory framework.

• Conservative approach to 2025 volume guidance due to prior year experience and ongoing biological challenges.

• High cost level and low volume expected in H1 2025; contract share expected at ~10% for FY 2025.