ISI predicts better times ahead as profits return

Group sales for the third quarter reached €102m (£85m), an increase of 6.5% compared to the same period last year.

The normalised pre-tax profit of €1.4m (£1.16) in the quarter marks an improvement of €2.5m over Q3 2023.

The VA (Value Added) S-Europe division reported sales of €47.4m  (£39m) in the third quarter, marking a 6% increase compared to the same period in 2023.

Sales for the year’s first nine months declined by 2.5% in value, however, and by 6% in volume compared to nine months  in 2023.

The division’s normalised pre-tax profit reached €1.1m, an increase of €2.3m over Q3 2023.

Sales of ahumados (smoked fish) increased by 6.7% in value during the first nine months of  2024, while volume increased by 3.7%.

The VA N-Europe division reached sales of €13.4m (£11m), a 6% increase from Q3 last year. Total sales for the first nine months reached totalled €40.1m, increase from €39m in the same period of 2023.

Higher-than-expected salmon prices in Q1 and part of Q2 impacted margins, presenting challenges similar to those faced last year. The division´s pre-tax profit in Q3 was €0.7m, down from a profit of €0.9m in Q3 2023.

Salmon prices peaked in April this year and have since declined significantly. Based on current forward pricing, prices are expected to remain stable for the rest of the year, which should positively impact its salmon-based operations.

The S&D division had a positive start to the year, with strong sales from Iceland, and continued to perform well through Q3.

Sales of fresh cod and haddock, along with frozen-at-sea cod and haddock in the UK and US markets, were key drivers of performance. Additionally, signs of recovery in the European market helped support solid sales for IS Iceland.