Nordic Seafood’s profit nearly halved in 2023 due to “very difficult market conditions”

Nordic Sesafood's headquarters in the Netherlands
Nordic Sesafood's headquarters in the Netherlands | Photo courtesy of Nordic Seafood
4 Min

Hirtshals, Denmark-based Nordic Seafood saw its profit drop to DKK 45.6 million (USD 6.6 million, EUR 6.1 million) in 2023, compared to DKK 82.5 million (USD 12.2 million, EUR 11.1 million) in 2022.

The total was below the company’s expectation of reaching DKK 65 million to DKK 70 million (USD 9.6 million to USD 10.3 million, EUR 8.7 million to EUR 9.4 million) in profit, according to Nordic's annual report.

“The company’s outlook going into 2023 was that 2023 would be a challenging year due to the high inflation in Europe, which was expected to have a negative impact on consumers’ behavior,” the company said in its results statement. 

The company’s net revenue dropped to DKK 3.28 billion (USD 477.2 million, EUR 439.6 million), down from DKK 3.7 billion (USD 538.3 million, EUR 495.9 million) in 2022. Its operating profit sunk to DKK 84.3 million (USD 12.3 million, EUR 11.3 million) from DKK 117.3 million (USD 17.1 million, EUR 15.7 million) the year before.

“The group has been facing very difficult market conditions with a negative impact on the performance in 2023. The overall demand in 2023 has been declining, and despite higher prices, revenue has decreased in 2023 compared to 2022,” it said. “Unusual and large price drops on core products have resulted in extraordinary losses and write-downs of, in total, approximately DKK 20 million [USD 2.9 million, EUR 2.7 million] in the subsidiary J.P. Klausen & Co. Despite a significant reduction of the working capital, increasing interest rates have had a negative impact on the profit before tax of DKK 14 million [USD 2 million, EUR 1.9 million] compared to 2022.”

Nordic Seafood is a wholly owned subsidiary of Japanese seafood conglomerate Nissui, conducting importing, packing, and sales of seafood, including the sale of Nissui-controlled companies’ products in the European market. Nissui recently reported higher net sales and operating profit in its 2023 fiscal year and acquired Hanstholm, Denmark-based fresh local fish processor Dengsö in October 2023 and IJmuiden, the Netherlands-based Maxima Seafood in December 2023, merging both into Nordic Seafood.

“In addition to local cod and flounder from Europe, we will expand our processing and sales capabilities for export marine products from Japan, such as scallops and yellowtail, and expand our business in Europe, where health consciousness and environmental awareness are increasing,” Nissui said in a press release announcing both acquisitions. “With Nordic's business expansion, the Nissui Group will be able to create synergies with the fresh fish procurement and processing business of U.K.-based Flatfish (acquired in 2019), the seafood home delivery business of U.K.-based Regal Fish (acquired in 2022), and Danish Salmon, which operates a land-based salmon farming business in Denmark (capital participation in 2020). By strengthening the seafood supply chain in Europe, the Nissui Group aims to strengthen its ability to make proposals to customers and further expand its seafood business in the region.”

Nordic Seafood predicted 2024 will ...

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