First half 2022 Results: Continued strong operational performance

Icelandic Salmon: Presenting first half 2022 results 

Icelandic Salmon is the parent company of Arnarlax and other subsidiaries involved in salmon farming and processing in Iceland. The companies are collectively referred to as “Icelandic Salmon” or the “Group”.

For the first six months of 2022, Icelandic Salmon AS (Euronext Growth Oslo: ISLAX) reported operating revenues   of   EUR   72.09, representing a 103.5 per cent increase from the previous year. In the period, increased market prices for salmon contributed to solid financial results alongside steady cost control and efficient production.

Operational EBIT for the first six months of 2022 was EUR 23.04 million, up from EUR 3.13  million in the first half of 2021. This gives an operational EBIT per kilo of EUR 3.64, up from an EBIT per kilo of EUR 0.65 for the same period in 2021 and for the second quarter of 2022 the Group had an EBIT per kilo of EUR 4.57.

“We see a strong operational performance in the period where the Group benefited of low contract share of sales and strong market prices. The Group continues to show progress in the biology with stable performance in Q2, supporting cost levels compared to previous quarters.

Growth plans are progressing as planned with the acquisition of the smolt plant Ísþór, further expanding our smolt capacity and giving access to bigger smolt, allowing for increased MAB utilization, reduced production time in sea and thereby reduced biological risk.” said Björn Hembre, CEO of Icelandic Salmon and Arnarlax.

Harvesting increased with 31 per cent from 4.8 thousand tonnes in the first half of 2021 to 6.3 thousand tonnes in the first half of 2022.

Further expansion of smolt production capacity

In 2021, the Group acquired two artic char facilities. Conversion to smolt production in those facilities is ongoing, and smolt production has started in one of the two facilities. Full operation at both facilities is expected before the middle of next year.

Along with two smolt facilities on the south coast and one in the Westfjords, the Group has operated a fourth smolt facility, “Eldisstöðin Ísþór”, with 50 per cent ownership. This facility is a key provider of smolt for the Group.

In the period, Icelandic Salmon reached an agreement to purchase the remaining shares in this smolt facility, providing the group with full ownership. The transaction was formally approved by the Icelandic competition authorities in August. The acquisition will increase total smolt capacity by approximately 2.0 million smolts in 2023 and accelerate the Group’s growth.

This will further support enhanced utilisation of current licenses and prepare for new areas and licenses.

Increased interest and demand

Icelandic Salmon continues its strategy towards the US & Canadian market with increased interest from new and reoccurring customers both in North America and Europe and. A new brand, IceFjord, was launched in the period together with a premium US customer

Outlook

Arnarlax currently holds licenses amounting to 25,200 tonnes of MAB in the Icelandic Westfjords and is now building additional sites within its existing licences to improve the Group’s MAB utilisations. First site has now been issued in Patreksfjörður and first output will be spring of 2024.

The Arnarlax application for a 10,000 tonnes farming license in Ísafjarðardjúp is ongoing, and a decision is still anticipated to be issued in 2022.

The Group’s application for additional biomass of 4,500 tonnes in Arnarfjörður has been delayed, but the Group is working on updating and resubmitting the application.

 

The presentation for the first quarter can be found here.

The condensed consolidated interim financial statements for the first half 2022 results can be found here.

 

CEO, Björn Hembre and CFO, Jónas Heiðar Birgisson will be presenting the Company’s results at 11 am CET on the 25th of August via a webcast on arnarlax.webcast.is.

The presentation will be made available for replay shortly after the live event.

 

For further information, please contact:

CEO Björn Hembre
Tel: +47 913 47 432
Email: bjorn@arnarlax.is

CFO Jónas Heiðar Birgisson
Tel: +354 414 0609
Email: jonas@arnarlax.is