First half 2023 results: Focus on biological growth, achieving key milestones with sustainability-linked financing and dual listing in Iceland
Bíldudalur, 24 August 2023
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”.
Operations
For the first six months of 2023, Icelandic Salmon has had strong focus on biological growth. Consequently, harvest volumes in the second quarter 2023 was very low. Total revenue for the first six months was EUR 71.6 million with an EBIT of EUR 15.3 million and EBIT/kg harvest of EUR 2.3.
“Our team has shown great commitment and demonstrated their capabilities in handling challenging farming conditions with low seawater temperatures, especially early in the year. To ensure optimal production and quality of our products, we harvested a record high volume in the first quarter, and then followed up with a quarter focused on biological growth and with limited harvest. With these operational measures, we are better positioned for the future,” said Bjørn Hembre, CEO of Icelandic Salmon.
The company has made significant investments in additional production capacity. In 2022, investments were made in freshwater facilities (Fjallalax, Laxabraut and Fiskeldisstöðin Ísþór) aimed at increasing smolt size and capacity. This year, two new hybrid feed barges were delivered, each with a capacity of storing 900 tons of feed.
“The new feed barges are important investments aiming to reduce CO2 emissions from operations, improve feed logistics and infrastructure as well as serving our fast-growing biomass at strategic locations. They are and will be important for our production and infrastructure going forward,” said Bjørn Hembre.
Strategic milestones
In August, Arnarlax signed a commitment letter for its first sustainability-linked loan agreement, totaling EUR 100 million, with DNB and Danske Bank. In addition, Arion Bank will step in with an overdraft facility and also act as a security agent for the loan agreement. The loan agreement contains a term loan facility and a revolving facility, with sustainability linked financial goals. The terms achieved are competitive, reflecting the company’s performance, and the credit market’s strong support of Icelandic Salmon’s sustainable operations.
In a further strategic move, Icelandic Salmon has engaged Arion Bank as adviser to prepare for a dual listing with depository notes on First North on the Icelandic Stock Exchange. Listing will make the company’s shares more easily accessible for Icelandic investors. Aiming at finalizing the listing process in the second half of 2023, the company anticipates that this will strengthen its presence and engagement with the local Icelandic investor community.
“The expansion of our banking group, the sustainability-linked financing, and the planned listing in Iceland, are factors of great importance to our growth. Having spent the last few years in one of Iceland’s fastest growing industries, I am looking forward to presenting Icelandic Salmon to the Icelandic Stock Exchange and to align interest with the local investor community, renowned for its strong passion for seafood, and drive our shared interest forward,” Bjørn Hembre said.
Outlook
The group reiterates its harvest guidance and expects to harvest 16,000 tonnes of salmon in 2023.
A presentation and condensed consolidated interim financial statements for the first six months of 2022 are attached here:
Icelandic Salmon’s CEO Bjørn Hembre and CFO Jónas Heiðar Birgisson will present Icelandic Salmon’s results at Aqua Nor today at 9:50am CEST, in the Mendelsohn conference room in Trondheim Spektrum. The presentation will also be available on webcast on www.arnarlax.webcast.is
For further information, please contact:
CEO Bjørn Hembre
Tel: +354 620 1936
Email: bjorn@arnarlax.is
CFO Jónas Heiðar Birgisson
Tel: +354 414 0609
Email: jonas@arnarlax.is
About Icelandic Salmon:
Icelandic Salmon is listed at the Euronext Growth. The company is the 100% owner of Arnarlax ehf, the leading farming company in Iceland with their head office in Bildudalur. The company is fully integrated with control over all parts of the value chain.
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