Salmon price drop boosts ISI profits

It was a year in which salmon prices went from very high to low halfway through which affected trading, ISI said.

 

The 2024 profit before tax from regular operations was above forecast at ISK 1.1bn (almost £7.5m) which was a significant improvement from the previous year.

 

The profit for the year after tax is ISK 414m (£2.33m) compared to a loss of 3bn ISK (€20.3m or £17m) in 2023.

 

ISI said the profit before tax from regular operations for this year is forecast to be ISK 1.1 to 1.4bn (£6.25m to £7.9m).

 

The operating income from operations in Southern Europe was ISK 9.1bn (£51m) in the fourth quarter, an increase of 6.5% compared to the same period in 2023.

 

Total sales for the year was comparable to the previous year in value but decreased by 2% in volume.

 

The operating profit before tax amounted to ISK 871m (€5.9m), an increase of 766m ISK (£5.2m) from 2023.

 

Iberica Group’s sales decreased by 1% in value and 3% in volume. Ahumados Domínguez’s sales increased by 4.5% in value in 2024 and by 1% in volume.

 

The operating income of the Northern Europe operation was ISK 2.6bn (£14m), an increase of 13% from the fourth quarter of last year.

 

Total sales for 2024 increased by 6% to ISK 8.6bn (£47m), up from ISK 8.1bn (£45m) in 2023.

The operating income in the fourth quarter of 2024 amounted to ISK 19.3bn (£107m), an increase of 16% from the same quarter in 2023.

 

The Q4 operating profit before tax amounted to ISK 229m ISK (£1.25m) compared to ISK163m (£1.1m) in Q4 2023. The profit before tax in 2024 was comparable to 2023.

 

ISI said salmon prices were higher than expected at the beginning of the year and remained high into the second quarter. But then they levelled off in the second half of the year.

 

This impacted the operating result, creating a similar level of uncertainty as at the same time in 2023.

CEO Ægir Páll Friðbertsson said: “The year 2024 was a year of turnaround in Iceland Seafood’s operations and all operating companies in the Group returned a profit during the year after a very difficult year before.

 

“It has been very pleasing to see this operational development in my first full year at the company, as well as to perceive the opportunities inherent in the company due to strong employees, reliable suppliers and strong customers. Until the year 2024, there were fluctuations in input prices and uncertainty in the market.

 

“Salmon prices were high until mid-year, but then stabilised, which resulted in a profit from salmon-related operations. Similarly, there were changes in the markets for white fish in the last quarter of the year, sales increased and the quarter’s performance was one of the best the company has ever had in that quarter.”

 

He added: “The increased demand we saw in the quarter for white fish products is explained, among other things, by the reduced allocation of cod quotas in the Barents Sea for 2025, and there is every likelihood that this demand will continue through 2025 and beyond.”