Samherji's revenue increased but earnings dropped in FY2023

Samherji's processing facility in Dalvik, Iceland
Samherji's processing facility in Dalvik, Iceland | Photo courtesy of Samherji
6 Min

Icelandic seafood company Samherji posted an increase in sales but a drop in earnings before taxes in FY2023 as it reported its core operations were “more robust.”

Samherji posted total sales of EUR 419.3 million (USD 450 million) in FY2023 up 10 percent from EUR 380.5 million (USD 408.3 million) in FY2022. The cost of goods sold also increased to EUR 332.5 million (USD 356.8 million) up from EUR 298.4 million (USD 320.2 million) and the result was gross income of EUR 86.8 million (USD 93.1 million) in FY2023 compared to EUR 82.1 million (USD 88.1 million) in FY2022. 

The company's EBITDA also increased to EUR 74.6 million (USD 80 million) in FY2023 up from EUR 69.9 million (USD 75 million) in FY2022. 

However, the company’s earnings before taxes dropped from EUR 110.7 million (USD 118.8 million) in FY2022 to EUR 73.2 million (USD 78.5 million) in FY2023. Net earnings overall dropped to EUR 58.7 million (USD 63 million) down from EUR 101.2 million (USD 108.6 million).

Nevertheless, the company said its overall core operations were “stronger” than in the previous year, as evidenced by the increased sales and EBITDA. The decline in profit is mainly attributable to a company restructuring in 2022, it said. 

Samherji’s foreign operations, which were under Alda Seafood Holding, were sold by the company in January 2023 to Alda Seafood CEO Baldvin Thorsteinsson, who is the son of Samherji CEO Thorsteinn Már Baldvinsson and also serves as the chair of Smaherji’s board of directors.

The company added that its largest investments during the year involved expanding a land-based fish farm in Öxarfjördur through its subsidiary Samherji Fish Farming. Samherji made a share-capital investment into a land-based salmon-farming project in the region in 2022, a move which Baldvinsson said at the time would double production capacity at the existing site from 1,500 metric tons (MT) of Atlantic salmon annually to 3,000 MT.

That investment amounted to EUR 27 million (USD 28.9 million), and the company said in its FY2023 report it is still aiming for 3,000 MT of Atlantic salmon annually.

“The knowledge and experience gained from operating this facility will be utilized in Samherji Fish Farming’s proposed land-based salmon farm in the Reykjanes Peninsula,” the company said.

Baldvinsson said Samherji faced “various challenges” during the year, but its operations were strong in spite of them. 

“Samherji sells almost all its products in foreign markets, where interest rates have spiked due to increased inflation. Wars have also had a major impact on international trade. In such situations, solid business relationships and strong sales networks prove their importance,” Baldvinsson said.

Baldvinsson said another challenge the company has faced is ...

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