ICELANDIC SALMON REPORTS STRONG Q4 RECOVERY

Icelandic Salmon Reports Strong Q4 Recovery, Secures €65M in Financing

Ending a challenging year with a stable biological situation

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

With determined efforts in the fourth quarter of 2024, Icelandic Salmon stabilized the biological conditions in the sea after having experienced significant challenges in the winter-spring 2023‑24, resulting in higher harvest volumes and weights, and good sea lice control.

To further strengthen the Group’s financial position, the group has agreed on an extension to its sustainability-linked financing agreement with DNB and Danske Bank. This agreement provides additional funding of EUR 65 million, increasing the total loan facility to EUR 160 million.

For the fourth quarter of 2024, operating income was EUR 49.9 million, compared to EUR 51.6 million in the fourth quarter 2023. The decline in revenues year-over-year was mainly driven by lower harvest volumes.

Operational EBIT for the quarter was EUR 1.4 million, compared with EUR 2.0 million in the prior-year period. The decline was driven by lower volumes and cost levels on harvested fish being affected by the biological challenges from last winter. The EBIT/kg for the quarter ended at EUR 0.22. Adjusted for the one-off cost, EBIT/kg was EUR 0.31.

Operations

In the fourth quarter 2024, Icelandic Salmon harvested 6,455 tonnes, compared to 7,219 tonnes in the same quarter last year.

Strategic events

The Group continues to work closely with the authorities to reinstate a license for 10,000 tonnes MAB of sterile salmon in Ísafjarðardjúp, which was revoked in Q3. This happened because the Icelandic Food and Veterinary Authority (MAST) did not provide a necessary comprehensive, weighted assessment of the potential risk of the spread of fish diseases and parasites before the license was issued.

Efforts to establish larger sites for improved MAB utilization continue, with extension of several sites in Arnarfjörður under review. The process has been delayed, and a final decision is not expected before the end of 2025. Additionally, a 4,500-tonne application in Arnarfjörður remains under review.

Market update and outlook

Icelandic Salmon continues to experience strong demand for its salmon. It achieved high prices for its products across key markets, where the North American and Asian market were particularly strong.

The company reported an average harvest weight of 5.2 kg GWT for the quarter, well above the Norwegian market average which according to official statistics was 3.9 kg GWT. This solid performance further underscores Icelandic Salmon’s strong market position.

As previously guided, the biological challenges faced in 2024 are expected to impact the first half of the year and 2025 harvest volumes, with the majority of volume expected in the second half of the year. For full year 2025, Icelandic Salmon maintains its volume guidance of 15,000 tonnes.

Source

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