Hirtshals, Denmark-based Nordic Seafood recorded a DKK 82.5 million (USD 12.2 million, EUR 11.1 million) profit in 2022, up from DKK 80.1 million (USD 11.8 million, EUR 100.7 million) in 2021, but the company said it expects a more challenging year in 2023.
The seafood trading firm, which has been owned since 2006 by Japanese conglomerate Nissui Corp, overperformed in 2022, as it expected profit in the range of DKK 60 million to DKK 65 million (USD 8.9 million to USD 9.6 million, EUR 8.1 million to EUR 8.7 million).
“Overall demand in 2022 has been at the same level as in 2021,” it said in its year-end financial results statement. “Increasing prices has secured a higher revenue and a higher operation profit, but due to higher interest rates, the group ends with a net profit just above 2021.”
Nordic Seafood said Russia’s invasion of Ukraine and the subsequent skyrocketing of energy prices, along with record-high inflation across Europe, resulted in a significant impact on the cost of the company’s funding.
“The company’s outlook going into 2022 was with a hope for a more normal year without any significant negative impact caused by Covid-19. However, the assumption for a normal year was changed on the 24 February, 2022, when Russia started the invasion of Ukraine, followed by the massive economic sanctions against Russia,” it said. “The uncertainty derived from the war in Ukraine curbed the activity in the beginning of the year, however during spring and summer, we saw a high demand, especially within the foodservice segment. During the autumn and in Q4, we have seen a declining demand diverted by the uncertainties caused by the high inflation.”
Nordic Seafood sells a wide variety of seafood products, with a focus on frozen products, through both its headquarters in Hirtshals and several European satellite offices.
Nordic Seafood projected profits in the range of DKK 65 million to DKK 70 million (USD 9.6 million to USD 10.3 million, EUR to EUR 9.4 million) in 2023.
“The group expect[s] 2023 to be a challenging year due to the uncertainties linked to the European economies,” it said. “Inflation is expected to remain high, which will have an impact on the consumers behavior.”
The company said it has doubled down on its sustainable product range, increasing its volumes of products with GSSI-benchmarked sustainability certifications sold from 39 percent to 42 percent by volume.
“Sustainable development of the seafood business is imperative and necessary for seafood to continue to feed the world. Nordic Seafood recognizes this responsibility, and as a large player in the seafood market, [tries] to impose sustainable transformation of the supply chain from farm [and] fishing to consumer,” it said. “In a challenging year, we have maintained and slightly improved our sale of sustainable products. It is our expectation that the volume of sustainable products will remain stable or slightly increase in 2023.”
Photo courtesy of Nordic Seafood
