Iceland Seafood's booth at the Barcelona Seafood Expo 2025.
Photo: Iceland Seafood International.
Iceland Seafood International (ISI) yesterday presented its Q1 2025 results report, a quarter that the company ended with positive results in all indicators, including a net profit of EUR 1 million, which, compared to EUR 0.1 million in the same period last year, represents a 900% increase.
The company thus continues the upward trend with which it managed to close 2024, after a 2023 that was an annus horribilis for the company, which was even forced to sell its UK subsidiary - the Grimsby plant, then acquired by Espersen, which last week announced that it may also have to dispose of it.
Against that, Iceland Seafood International now emphasized that its operational recovery continued in Q1 2025, and the figures show it. If, as said above, net profit was EUR 1 million, normalized profit before tax (PBT) was EUR 2.3 million, up 21% from the EUR 1.9 million achieved in Q1 2024.
Sales, meanwhile, were EUR 119.3 million, up 4.8% from the same quarter last year, while the net margin for Q1 2025 reached EUR 12.3 million, up from the EUR 10.5 million of Q1 2024. EBITDA for Q1 2025 was EUR 5.4 million, which is 68.75% more than last year's EUR 3.2 million.
By divisions, sales of the Value Added Southern Europe Division were EUR 57.1 million in the period, which is 2.3% over last year, while normalized profit before tax was EUR 2.3 million, an increase of EUR 0.2 million over Q1 2024.
The company further pointed out the value of this positive result by taking into account two important factors. On the one hand, unfavorable currency movements related to its operations in Argentina generated an exchange loss of EUR 0.6 million compared to a gain of EUR 0.9 million in the first quarter of 2024. On the other hand, the timing of Easter, one of the most important cod consumption periods in southern Europe, which this year was in April, i.e., it was out of the first quarter.
Meanwhile, Spain's Ahumados Domínguez recorded a 7% drop in sales versus Q1 2024, reporting a PBT loss of EUR 47 thousand in Q1 2025, but Iceland Seafood International noted that this is also an improvement versus Q1 2024's EUR 700 thousand loss. "This is the best Q1 result since ISI hf acquired the company," the company noted in the release on the results.
The Value Added Northern Europe Division, meanwhile, reported sales of EUR 14.4 million, an increase of 11% year-on-year. During the quarter, salmon saw a good supply and low prices, while, on the contrary, whitefish saw prices rise sharply due to a tight supply.
The Irish operation reported a normalised PBT of EUR 76 thousand, compared to a loss of EUR 35 thousand in Q1 2024, while, in contrast, Iceland Seafood Barraclough recorded a PBT loss of EUR 128 thousand. Thus, the overall loss before tax was EUR 53 thousand, which, the company said, was in line with the same period last year. ISI added that, based on forward prices and supply forecasts, salmon prices are expected to remain stable for the rest of the year.
Finally, sales of the S&D Division were EUR 51.1 million, an increase of 4.7% over Q1 2024, keeping profitability in line with the first quarter of last year. According to the company's note, strong demand for cod drove an increase in sales for IS Iceland at the beginning of the year.
"During the first quarter, we secured a cod supply and maintained the company on track in a highly competitive environment," ISI CEO Ægir Páll Friðbertsson said, commenting on the results. "All our divisions have increased sales compared to the same quarter in 2024, giving us confidence for the rest of the year. Cod supply will be tough in the coming months, and the salmon market will most likely be highly price sensitive with lower prices and good supply," he added.
Precisely, regarding the forecast for its main species, the company said that everything indicates that cod prices will remain high throughout the year, with a historically low supply, while salmon prices will remain stable and below expectations.
In its release, ISI also made a mention of the political landscape, which it said has been "unpredictable worldwide, although with signs indicating a more balanced economic environment." It added that it does not anticipate drastic changes in the fishing sector in the coming months and therefore expects all divisions to perform according to budget.
Thus, based on the first quarter results and the current trade outlook, Iceland Seafood International maintained the normalized PBT outlook for 2025 between EUR 7.5 and EUR 9.5 million.
Likewise, the company noted that, through various operations such as the renewal and extension of several credit lines or the issuance and sale of bonds, the Group's refinancing process is nearing completion. According to ISI's release, this refinancing is expected to reduce interest expenses as of June 2025.
"The Group remains committed to further reducing interest costs through ongoing financial optimization efforts," Iceland Seafood International CEO Ægir Páll Friðbertsson said in this regard.
In terms of strategy, the company said it has been working on several projects focused on growth, operational efficiency and the company's image and culture, and expects them to start showing positive results in the coming months.
"We know we have great potential to grow and make more of our company network, solid sales and sourcing network, and a highly skilled team of seafood professionals. The objective is to strengthen Iceland Seafood further to meet its future challenges and opportunities, which I believe will benefit the company, owners, and staff," Friðbertsson concluded.