Q1 2022 Results: Strategic initiatives yield results as expected

Icelandic Salmon: presenting Q1 results 2022

During the first quarter of 2022, Icelandic Salmon AS (Euronext Growth Oslo: ISLAX) reported an operating income of EUR 37.1 million, a 114 per cent increase from EUR 17.3 million in the first quarter of 2021.

This is the result of strong operational performance, continued strong price achievement and high capacity utilisation of the Group’s harvesting operation, supported by an increase in harvest volume which grew from 2,5 tousand tonnes in the first quarter of 2021 to 3,4 tousand tonnes in 2022, and extensive harvest for third party.

In the quarter, operational EBIT amounted to EUR 9,5 million , up from EUR 0,4 million in the same quarter in 2021. This resulted in an EBIT/kg of EUR 2.82, up from EUR 0.15 in the same period the year before.

Icelandic Salmon is the Norwegian 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”.

“We started 2022 with a good price achievement and strong operational performance. We have been trough winter months which show us that the mitigating measures implemented to prevent mortality during winter are working, even if  we have seen some increased mortality on a few  sites. This is an exciting time for us, and I look forward to providing the market quarterly with additional updates on the operational performance. With the majority of volumes sold in the spot market, Icelandic Salmon will be exposed to potential volatility in market prices. However, we firmly believe that operational performance will still be strong, and think we have some exciting quarters ahead of us.,” said Björn Hembre, CEO of Icelandic Salmon and Arnarlax.

During the first quarter of 2022, Icelandic Salmon harvested 3,400 tonnes from it´s own production, representing an increase of 34 per cent, from the 2,500 tonnes in the first quarter of 2021.

Smolt expansion on track

The Group has expanded its operations on the South Coast of Iceland, with the Fjallalax smolt plant continuing to progress. With 100 tonnes of maximum allowable biomass (MAB), operations started with the input of eggs in January 2022, which are now being moved to start-feeding.

Laxabraut 5 development plans are also on track, with a license for 900 tonnes MAB confirmed in the first quarter of 2022. The first delivery from Fjallalax to Laxabraut 5 is expected to take place in the autumn of 2022 for further post-smolt production.

With two expansion initiatives progressing, it is expected to provide Icelandic Salmon with an increased number of smolt and size for approximately 7,000 tonnes of additional harvest volume. This will support enhanced utilisation of current licenses and prepare for new areas and licenses.

Increased demand in the US

Icelandic Salmon continues to deliver filets and HOG fish via boat to North America and has experienced increased high-end customer demand in the US. Additionally, with the new Arnarlax brand in place, Arnarlax achieved a significant increase in prices and margins across all markets during the first quarter of 2022. Despite strong growth in the US market, Europe still stands for the majority of volume of Icelandic Salmon export.

Outlook

Arnarlax currently holds licenses amounting to 25,200 tonnes of MAB in the Icelandic Westfjords and is now building an additional three sites within its existing licences to improve the Group’s MAB utilisation. The first of these three sites have been advertised by the authorities and is expected to be issued in the second quarter of 2022.

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

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

 

The presentation for the first quarter can be found here.

CEO, Björn Hembre and CFO, Jónas Heiðar Birgisson will be presenting the Company’s results at 11 am CET 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