Síldarvinnslann (SVN) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was $325.1M, down from $404.7M in 2023, mainly due to capelin (loðna) shortfall and volcanic disruptions impacting operations in Grindavík.

• EBITDA decreased to $84.0M from $121.8M, with net profit at $44.1M versus $73.4M last year.

• Cost increases, energy price hikes, and reduced quotas drove the need for efficiency improvements.

• Strong pelagic product markets and good performance from Arctic Fish, but overall volumes and margins declined.

Financial highlights

• Revenue fell 19.7% year-over-year; EBITDA margin dropped to 25.8% from 30.1%.

• Net profit declined 40% to $44.1M; capelin catch and product output both decreased significantly.

• Cash at year-end was $101.8M, up from $81.7M, despite lower earnings.

• Equity ratio improved to 60.7% from 58.5% at prior year-end.

• NIBD/EBITDA increased to 2.06 from 1.83.

Outlook and guidance

• Capelin shortfall expected to persist, with only 3,000 tons anticipated for 2025.

• Ongoing cost pressures from energy, carbon taxes, and quota reductions; further efficiency measures planned.

• Pelagic and whitefish product markets remain strong, but global uncertainties could impact demand.