Q4 2022 Results: All time high quarterly harvest volume

Q4 2022 results: All time high quarterly harvest volume

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”.

Continuous growth

The full year of 2022 and the fourth quarter of 2022 represent periods of record growth in both harvest volume and revenues for Icelandic Salmon. During the fourth quarter of 2022, the Group’s operating income amounted to EUR 51.7 million compared with EUR 35.8 million in the corresponding quarter of 2021. Icelandic Salmon’s operating income for 2022 amounted to EUR 157.6 million compared with EUR 90.8 million in 2021. An impressive topline growth of 74%

“The second half of 2022 has followed the strong results we achieved in the first half of the year. We are starting to reap the benefits of our expanded operations and achieved significant growth in the final quarter and last year. We are entering 2023 with a strong financial position and as a proud contributor to the Icelandic economy and society,”, commented Björn Hembre, CEO of Icelandic Salmon and Arnarlax.

Operational EBIT for the fourth quarter was EUR 9.3 million compared with EUR 3.65 million in the fourth quarter of 2021. The Group’s operational EBIT for 2022 amounted to EUR 36.15 million compared with EUR 7.3 million in 2021. This has resulted in an operational EBIT per kilo of EUR 1.55 in the quarter, up from EUR 0.86 in the corresponding quarter of 2021. The Group’s operational EBIT per kilo in 2022 amounted to EUR 2.24 compared with EUR 0.63 in 2021.

Icelandic Salmon harvested 6,008 tons in the fourth quarter, representing the Group’s highest harvesting volume in a quarter, compared with 4,272 tons in the fourth quarter of 2021. The Group’s harvest volume for the full year amounted to 16,138 tons and has increased by 40 per cent when compared to 2021.

The Group has maintained cost control with regard to harvesting and reduced costs between the third and fourth quarters of 2022. Costs are expected to increase in 2023 as a result of increased prices for raw materials.

Dynamic and maturing market

The North American market for salmon offers an interesting position for Icelandic Salmon as majority of salmon is transported by air into this market, resulting in high carbon footprint and cost.  As Iceland´s main entry into the market is by sea, CO2 footprint and cost is considerably reduced. This, along with rapid growth of the market in the last few years and relatively low, but growing, seafood consumption per capita, offers an interesting opportunity for Icelandic Salmon.

The Group has continued to expand its geographical reach and supplies its products to countries across Europe, North America and Asia. In the fourth quarter, Icelandic Salmon delivered its highest volume yet to the US. Europe remains the Group’s main market, but the US and Canadian markets are expected to continue to grow in the coming years.

As a result of the Group’s low share of fixed-price contracts, Iceland Salmon has achieved good market prices with high spot prices. This is also partly due to larger-sized fish being harvested in the fourth quarter, which has contributed to higher prices in the market.  There were some negative price effects of increased quality downgrades at the end of the fourth quarter.

The past 12 months were also the Group’s first full year offering its pre-rigor fillets and demand has steadily increased throughout the year.

Increased access to smolt

As part of the Group’s growth strategy, the Group acquired the remaining share of the Ísþór smolt plant in 2022. This has enabled Icelandic Salmon to access a higher number of larger post smolts to fully utilize its seawater licenses in the coming years. Increased size of smolts will reduce time in sea and considerably increase MAB utilization.  The Group expects to see the effect of this in smolt output, which will be transferred to harvest volumes in 2024. The Group also received another site approval as part of its 12,200-ton license in Patreksfjörður and Tálknafjörður which is important to increase the MAB utilization. In parallel, the Group invested in additional sea equipment in the year to support its increase in smolt output in the coming years.

Updated guidance

The Group´s guidance for 2023 is 16,000 tons in harvesting volume, and expects a significant volume growth in 2024.

The presentation for the fourth quarter of Icelandic Salmon can be found here.

CEO, Björn Hembre and CFO, Jónas Heiðar Birgisson will be presenting the Company’s results today, 22nd of February, at 10 am CET via a webcast on: arnarlax.webcast.is.

The presentation will be made available on our website for replay 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