Reykjavik, Iceland-headquartered Iceland Seafood International (ISI) posted an increase in its sales and profit year over year in Q3 2024, as the company closed in on posting a net profit.
According to its Q3 2024 results, ISI had sales of EUR 102 million (USD 106 million) in Q3 2024, an increase of 6.5 percent compared to the EUR 95.8 million (USD 99.7 million) it posted in the same period of 2023. The company’s normalized profit before tax also increased, reaching EUR 1.4 million (USD 1.46 million) in the period – up from a EUR 1.1 million (USD 1.15 million) loss in 2023.
ISI’s normalized EBITDA also increased, reaching EUR 3.3 million (USD 3.4 million) in Q3 2024 compared to EUR 1.1 million (USD 1.15 million) in Q3 2023. The company’s net profit fell short of positive, with a loss of EUR 700,000 (USD 728,000), but that total was still an improvement over the loss of EUR 5.5 million (USD 5.7 million) it posted in Q3 2023.
For the first nine months of 2024, the company sold EUR 314 million (USD 327 million) worth of product, down slightly from EUR 318.4 million (USD 331.5 million) in the first nine months of 2023. Normalized profit before tax, however, is currently positive, with a gain of EUR 2.5 million (USD 2.6 million) compared to a loss of EUR 1.9 million (USD 2 million) in 2023.
Net profit also improved, reaching a loss of EUR 1.5 million (USD 1.6 million) in the first nine months of 2024 compared to a loss of over EUR 20 million (EUR 20.8 million) in the same period of 2023.
"The first nine months of 2024 have reassured us that we are on the right track. All key indicators are heading in the right direction,” ISI CEO Ægir Páll Friðbertsson said. “That is a very positive sign for us in a market that has been highly challenging in all aspects for quite a long time now.”
The company said its VA S-Europe division posted sales of EUR 47.4 million (USD 49 million) in Q3 2024, a 6 percent increase compared to the EUR 44.7 million (USD 46.5 million) it posted in the same period of 2023. Normalized pre-tax profit reached EUR 1.1 million (USD 1.15 million), an increase of EUR 2.3 million (EUR 2.4 million) over the EUR 1.2 million (USD 1.25 million) loss it posted in Q3 2023.
Its VA N-Europe division posted sales of EUR 13.4 million (USD 13.9 million), up from EUR 12.6 million (USD 13.1 million). The normalized profit before tax fell slightly from EUR 900,000 (USD 936,000) to EUR 700,000 (USD 728,000).
The company’s Sales and Distribution (S&D) division posted sales of EUR 43.1 million (USD 44.8 million), up from EUR 41.7 million (USD 43.4 million). Its normalized profit before tax increased slightly from EUR 800,000 (USD 832,000), up from EUR 400,000 (USD 416,000).
ISI’s performance in 2023 was negatively impacted by losses in its U.K. business, which it sold partway through the year to Danish value-added producer Espersen. In its Q3 2024 results presentation, ISI said it has reached a final agreement with Espersen regarding the settlement of inventories that ISI was responsible for at the time of the sale in 2023, and all inventories have now been cleared.
The company has also been facing a challenging environment, and said in its H1 2024 results its economic landscape remained “uncertain” due to high interest rates.
“High interest rates and inflation, high raw material prices, lesser demand, decreasing fish consumption, political instability, and increasing storage and transport costs,” Friðbertsson said.
In March, ISI said it was introducing a new strategy for 2024 focusing on the strong positions of its operations in Spain and Ireland. Friðbertsson said the company has seen demand in Europe begin to recover, and demand in the U.S. has increased in part due to the country’s ban on seafood from Russia.
High prices are also benefiting the company’s wild-caught segment, Friðbertsson said.
“We expect cod prices to remain high in coming years due to a quota reduction in the Barents Sea,” he said.
Falling salmon prices also benefited the company, with prices in Q3 2024 falling lower than the price from the previous two years, allowing for better margins.
In its results presentation, ISI said that its branded product sales are taking up an increasing share of its total sales, reaching 39.5 percent and growing.
“While the economic landscape remains uncertain, there are positive signs emerging. Interest rates, inflation, and food inflation have been easing in our key markets, which is encouraging,” Friðbertsson said. “While markets continue to be sluggish, there are signs of recovery, and we are hopeful that this will lead to increased demand in the coming months.”
