Síldarvinnslann (SVN) Q3 2024 earnings summary

Executive summary

• Q3 2024 performance was strong, with successful mackerel and herring seasons and robust market demand for pelagic products.

• Síldarvinnslan hf. reported $236.8M revenue and $28.4M net profit for the first nine months of 2024.

• Whitefish processing in Grindavík operated at full capacity since September, but operations were disrupted by natural disasters, impacting subsidiary Vísir ehf.

• Total assets at 30.09.2024 were $1,097.1M, with equity at $653.4M and an equity ratio of 59.6%.

• The merger of Sjávarmál ehf. and Daðey ehf. was completed as of January 1, 2024.

Financial highlights

• Q3 2024 revenue was $95.1M, down from $106.8M in Q3 2023; EBITDA was $32.3M (33.9% margin), net profit $19.1M.

• 9M 2024 revenue was $236.8M, down from $317.8M in 9M 2023; EBITDA $58.0M, net profit $28.4M.

• Total assets at September 30, 2024, were $1,097.1M, with cash at $87.1M.

• Dividend of $23.3M was paid in March 2024.

• Equity ratio improved to 59.6% from 58.6% at year-end 2023.

Outlook and guidance

• Management expects previously issued earnings guidance to hold.

• Market outlook remains generally positive despite price volatility; loðna (capelin) remains a key variable.

• Management is reviewing Grindavík operations, with safety and insurance as key considerations.

• Despite disruptions, management does not consider the viability of the company or group to be at risk.

• Ongoing uncertainty in energy markets and unresolved quota allocations.