Barcelona ISI facility.
Iceland Seafood International
Iceland Seafood International hf has published its fourth-quarter and full-year 2024 results, including exceeding expectations for normalized PBT (profit before tax), which was forecasted to be between €5.0 and €7.0 million and ended at €7.4 million.
Specifically, VA S-Europe division sales in the fourth quarter increased by 6.5% compared to the same period in 2023. However, sales for the full year decreased by 2% in volume compared to 2023. The division's normalized pre-tax profit reached €5.8 million, an increase of €5.1 million over 2023.
Moreover, VA N-Europe division sales increased by 13% from Q4 last year and total sales for 2024 by 6% compared to 2023. The division's pre-tax profit in Q4 was €1.5 million, €1.1 million more than in Q4 2023. The pre-tax profit for 2024 was on par with 2023.
Finally, the S&D division sales in Q4 showed a 22% increase from Q4 last year and total sales for 2024 saw a 2% increase compared to 2023. According to the company, these figures were made possible thanks to the sales of fresh cod and haddock, and frozen-at-sea cod and haddock in the UK and US markets.
In 2022, unprecedented cost increases and high volatility severely affected Iceland Seafood's operations, and the company reported a loss of EUR 9.9 million (USD 10.7 million).
Then, it experienced a difficult first 9 months of 2023, topped off by a loss-making third quarter, with the group posting a net loss of €5.5 million ($6 million). Also, the company sold its UK operation to Danish value-added producer Espersen.
"The year 2024 was a turnaround year for Iceland Seafood's operations. All divisions within the group returned a profit during the year after a very difficult 2023," CEO Ægir Páll Friðbertsson expressed.
The positive balance brought by 2024 is significant, as the company was selling complex inventories that were generating losses, and interest costs increased between 2023 and 2024, reaching approximately €3.6 million.
For 2025, Friðbertsson fears that due to the decrease in cod quotas, the supply will be lower than in recent years. He also states that half of the company's interest-bearing debt needs to be refinanced.
"The company's main focuses in the coming months will therefore be to strengthen the supply chain, refinancing and continuing work on reviewing the company's strategy with the sole aim of providing a stronger foundation for the operation and strengthening it for the future," he concluded.
