Iceland Seafood International will this year focus on driving efficiency and profitability from recent investments, ISI's leaders said during the company's annual general meeting on 18 March in Reykjavík, Iceland.
Having navigated a challenging 2020, largely brought by the COVID-19 pandemic, ISI CEO Bjarni Armannsson said this year, the company will look to stabilize its U.K. operation by improving efficiencies at its new factory and by decreasing costs within the supply chain.
Having reacted to the pandemic situation by securing significant sales growth into the retail sector, the company will also be looking to take “full advantage” of the opportunities that will come when the U.K. foodservice sector reopens.
Another focus area will be the integration of ISI’s operations in Ireland, with the expectation that sourcing, processing, and logistics synergies could bring annual savings of EUR 200,000 to EUR 500,000 ((USD 238,000 to USD 596,000) in 2022. Oceanpath, the Irish subsidiary of ISI, completed the acquisition of smoked salmon producer Carr & Sons Seafood Limited from Mondi Group AB in November last year.
Armannsson said ISI will look to drive automation and focused growth in its southern Europe segment in 2021, with the expansion of its production and cold-storage facility in Barcelona, Spain.
Last month, ISI anounced 2020 sales of EUR 369.8 million (USD 440.5 million), a reduction of 15 percent on the previous year. It also posted a net margin of EUR 30.3 million (USD 36.1 million), down by EUR 8.8 million (USD 10.5 million) year-on-year, and normalized profit before tax of EUR 5.5 million (USD 6.6 million), compared to EUR 11.4 million (USD 13.6 million) in 2019.
The group pointed to encouraging results in the final quarter of the year, despite negative impact from lockdown restrictions in key markets, and stated that 2021 had got off to a “good start” in spite of the continuing COVID-19 challenges.
Commenting on last year’s results, which were presented in full at the meeting, Armannsson said ISI had emerged a stronger organization after the COVID crisis, with contingency plans put in place to capitalize on the opportunities that have arisen while also minimizing negative effects.
“We truly believe in our value-added businesses. We believe that by investing in top-of-the-line manufacturing capabilities close to our customers, we can understand them better and serve them better. Through close cooperation with our customers, we can also be a better partner for our suppliers who we value immensely,” Armannsson said. “We have a strong belief in our future. We believe we can continue to grow profitability and leverage our network and expertise. That is what motivates us and is the driving force for the people at Iceland Seafood. We want to make our share in changing the world for the better.”
Chairman Liv Bergþórsdóttir also underlined that 2020 was “a challenging year, marked by continuing complex and unpredictable circumstances,” but that the ambition and endurance of employees throughout the group had stood out.
“Now in the beginning of 2021, it is clear that the board and the employees of Iceland Seafood will face continuing challenges with the ongoing impact of the pandemic. However, we see the light at the end of the tunnel, we will benefit from the experience and spirit that our employees have shown during these exceptional times. The company will be in a stronger position after the pandemic than before it started,” she said.
Photo courtesy of Iceland Seafood International
