Brim generated an operating income of EUR 60.3 million (USD 71.3 million) in the second quarter of this year, contributing to first-half earnings of EUR 133.1 million (USD 157.5 million). Compared to Q2 and H1 2020, these totals represented rises of EUR 10.7 million (USD 12.7 million) and EUR 27.6 million (USD 32.7 million), respectively.
The Icelandic seafood group, formerly known as HB Grandi, said the increases can mainly be attributed to the fact that the sales companies in Asia that it bought from Útgerðarfélag Reykjavíkur in July last year are now part of the organization.
Brim’s sales companies achieved operating incomes of EUR 25 million (USD 29.6 million) and EUR 45 million (USD 53.2 million) for the second quarter and first half of 2020 respectively. However, its earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to EUR 9.5 million (USD 11.2 million) for Q2 and EUR 17.2 million (USD 20.3 million) in the first-half, down from EUR 13.3 million (USD 15.7 million) and EUR 23.1 million (USD 27.3 million) a year previously.
Profit in Q2 totaled EUR 5 million (USD 5.9 million) and EUR 5.4 million (USD 6.4 million) for the first-half, down from EUR 6.8 million (USD 8 million) and EUR 10.7 million (USD 12.7 million).
By the end of the first half of 2020, the group's vessels had caught 23,000 metric tons (MT) of demersal fish and 34,000 MT of pelagic fish, down from 26,500 MT and 43,600 MT in the same period of 2019.
COVID-19 had a “significant” impact on operations during the period, and while the group is well-placed to deal with changing circumstances, the pandemic’s impact on operations and finances in the coming months and quarters remains impossible to predict, Brim said.
It also highlighted that during the crisis it had seen increased seafood sales into retail but that its foodservice trade in key markets had reduced or closed, while freight routes have been disrupted with costs increasing.
"Difficult fishing conditions and reduced pelagic fishing, the impact of the COVID pandemic on the market, and the radical renewal and technological modernization of the company's demersal fish processing in Norðurgarður characterized operations in the first half of the year,” Brim Board Chairman Kristján Davíðsson said.
Brim now owns and operates 10 fishing vessels.
Photo courtesy of Brim
