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Q1 2023 results: Record-high harvest volume and continued growth

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”.
Continued growth
Icelandic Salmon AS (Euronext Growth Oslo: ISLAX) reports an operational EBIT of EUR 18.4 million and EBIT per kg of EUR 2.79 for the first quarter 2023. Corresponding figures for the same quarter last year were EBIT of EUR  9.5 million and an EBIT per kg of EUR 2.82. The first quarter of 2023 saw a record-high harvest volume of 6,572 tonnes, up 94 per cent from 3,369 tonnes in the first quarter of 2022.
“We are proud of our employees’ strong expertise and ability to navigate wisely in the market and at the same time working in harmony with the biology of our salmon. Our strong operational performance, combined with sustained high demand, put us on a clear path of continued growth”, said Bjørn Hembre, CEO of Icelandic Salmon and Arnarlax.
The high harvest volume can be attributed to the strong market sentiment and the Group’s ability to meet the biological challenges reported in the previous fourth quarter presentation. Despite biological challenges, which led to harvesting of smaller fish and lower price achievements than in the previous quarters, the Group remains optimistic. Cost in the first quarter 2023 increased compared with the quarter before, mainly due to higher raw material cost.
Strong market sentiment for Icelandic Salmon
Icelandic Salmon continues to expand its geographical reach, supplying its high-quality products to countries across Europe, North America, and Asia. In the first quarter of 2023, the Group reduced its volume to the US compared to the previous quarter, mainly due to the strong market prices seen in Europe. However, the Group remains committed to focusing on the US and Canadian markets going forward, which are expected to continue to grow in the coming years.
The Group’s low share of fixed-price contracts has meant that its products have been sold at relatively strong prices in the spot market. In the first quarter, the Group had a contract share of 8 per cent and expect to have a contract share of around 10 per cent in the full year.
License update and expansion plans
Icelandic Salmon is committed to continue to grow the business and establish larger sites. The licence for a first site in Patreksfjörður is already issued, and plans to expand current sites in Arnarfjörður are in progress, pending updated applications and environmental assessments.
In addition, the Group is awaiting a new farming license in Ísafjarðardjúp, expected to add an additional 10,000 tonnes in capacity, there is uncertainty on the share of fertile fish, pending an assessment of sailing routes. The Marine and Freshwater Research Institute is set to release the new Risk Assessment this summer, which could potentially increase Icelands fjords capacity, supporting further growth for Icelandic Salmon.
The group reiterates its harvest guidance, and expects to harvest 16,000 tonnes of salmon in 2023, followed by significant volume growth in 2024.
The presentation for the first quarter is attached here: Q1_2023 – Icelandic Salmon Presentation
CEO, Bjørn Hembre and CFO, Jónas Heiðar Birgisson will be presenting the Company’s results at 11 am CEST via a webcast on arnarlax.webcast.is .
Questions may be asked during the live session. The presentation will be made available for replay on our website, https://www.arnarlax.is , shortly after the live event.
For further information, please contact:
CEO Bjørn Hembre
Tel: +47 913 47 432
Email: bjorn@arnarlax.is
CFO Jónas Heiðar Birgisson
Tel: +354 414 0609
Email: jonas@arnarlax.is