Brim posts increased Q3 sales and profit, sells chunk of capelin quota

Iceland-based Brim achieved increased sales and a higher profit in Q3 2021 compared to Q3 2020, citing more stable operations.

Reykjavík, Iceland-based Brim achieved increased sales of EUR 80.7 million (USD 90.8 million) in the third quarter of 2021, alongside a higher profit of EUR 19.9 million (USD 22.4 million), which it credited to a stablization of its operations in the period compared with Q3 2020.

Compared with Q3 2020, Brim’s sales and profit in the most-recent financial quarter rose by EUR 10.9 (USD 10.3 million) and EUR 3.9 million (USD 4.4 million), respectively. However, its earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter slipped by 3 percent, or EUR 815,000 (USD 917,000), to EUR 25.8 million (USD 29 million).

Brim said its demersal fish division’s operations had recorded good catch and found a good position in its markets. But at the same time, in the pelagic category, the mackerel fishing season was “difficult,” while herring fishing began later than in 2020, Brim CEO Guðmundur Kristjánsson said.

"The results of the quarter are good, and I am pleased with how stable the operation has become. In recent months, we have systematically invested in demersal catch quotas and new technology that is yielding results today. We also see that investments in sales companies strengthen our business model,” Kristjánsson said. “The capelin season is ahead and this is the largest amount of capelin quota since 2003.”

Kristjánsson said with an increase in its capelin allocation, Brim had exceeded the 12 percent maximum share allowed by the Icelandic government. As such, the company has sold a 5.84 percent catch share in capelin and a 0.2 percent catch share in saithe to Útgerðafélag Reykjavíkur (UR) for a total ISK 3.4 billion (USD 22.9 million, EUR 20.3 million). UR is owned by Kristjánsson.

The quota sale includes an agreement where Brim has a call option on a 5.84 percent quota in capelin in the event of a change in cod-equivalent species.

Capelin’s share of the cod-equivalent quota had been zero percent for the past three years, but is now 37.4 percent.  

Photo courtesy of Brim


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