Value-added segment boosts profits for Iceland Seafood International
Iceland Seafood International hf (ISI) has posted its first interim results following its listing on NASDAQ's First North market in Iceland in May, stating that during the first-half of 2016 the group continued to benefit from its investment in higher margin value-added activities.
While first-half revenues fell to EUR 119 million (USD 134 million) from EUR 129 million (USD 145.3 million) in H1 2015, ISI generated normalized profit before tax of EUR 1.7 million – up 55 percent or EUR 600,000 (USD 675,632) and 13 percent better than expectations. Its net income in the same period increased by EUR 1.1 million (USD 1.2 million) to EUR 1.2 million (USD 1.4 million). According to ISI, the increase in normalized profit before tax has benefited from a combination of positive trading margins in Iceland versus a weak comparative, as well as from a positive contribution from the group's U.K. foodservice business, Havelok.
Its Consolidated Balance Sheet reports that total assets at 30 June 2016 amounted to EUR 78.7 million (USD 88.6 million), compared to EUR 85.7 million (USD 96.5 million) a year previously. Equity of EUR 14.1 million (USD 15.9 million) had increased by EUR 6 million (USD 6.8 million) since the year-end reflecting the equity injection on listing and the underlying profits of the group in H1 2016. Its net debt of EUR 38.6 million (USD 43.5 million) was EUR 8.2 million (USD 9.2 million) lower than at the year-end and EUR 12 million (USD 13.5 million) lower than in June 2015.
“These excellent results are driven by good performance in all operating divisions. The Iceland Division saw growth in profitability, driven by improved pelagic margins and lower working capital. Iceland is the backbone of our business, where we work with a broad spectrum of producers to maximize the value of their products in different markets,” said Helgi Anton Eiriksson, CEO of Iceland Seafood International.
“The value-added businesses in [the United Kingdom] are collectively showing strong profit growth, where Havelok, our foodservice business which started trading in 2013 has reached the critical mass to move into profitability enabling the U.K. division to double its pretax profits.
“The important Spanish business continues to deliver the largest profit contribution of the three operating divisions, with sales growing from previous year,” said Eiriksson.
The group’s shares were listed on the First North Iceland market on 25 May, following an equity raise and sale of a 40 percent stake in the company to professional investors in Iceland.
“This was the first listing on the First North market in Iceland for many years, and an important step for the group to initiate it‘s plans for further expansion to service its customers with high-quality, value-added seafood,” said Eiriksson.
“At the end of H1 2016 the group is well positioned to maintain and grow revenue and margins, with strong demand for seafood in most major markets.”
Headquartered in Iceland, ISI has operations in Iceland, the United Kingdom, France, Germany, Spain and the United States.