Icelandic seafood company Samherji reported an operating profit of €42.4 million (US$49.5 million) in 2024, a year-on-year decrease of €12 million (US$14 million).
The company's net profit, including the share of profit from associated companies and financial items, amounted to €45.6 million (US$53.2 million) after taxes, compared to €58.7 million (US$68.5 million) in 2023.
Samherji sold products for €443 million (US$517 million) last year, with revenue increasing by nearly six per cent year-on-year. Gross operating profit totalled €61.4 million (US$71.6 million), representing a decline of just over 17 per cent from the previous year.
Share of profits from associated companies amounted to €11.7 million (US$13.7 million). Samherji said this figure declined year-on-year, primarily due to lower earnings from Síldarvinnslan, resulting from no capelin season in 2024.
At year-end 2024, Samherji's total assets stood at €802.2 million (US$936 million), and equity amounted to €578.8 million (US$675.3 million). The group’s equity ratio at year-end was 72 per cent, compared to 73 per cent at the end of 2023.
Samherji said the equity ratio has remained high in recent years, reflecting significant investments in core operations and a solid financial position.
Samherji CEO Baldvin Thorsteinsson said 2024 was a successful year overall for the company’s demersal fishing and processing operations.
“In pelagic fisheries, the decline in operating results is primarily due to the absence of a capelin season, a major disappointment for both the industry and the Icelandic economy as a whole," said Thorsteinsson. "We hope to work closely with the government to better understand the reasons behind the significant decline in the capelin stock in recent years.
"The increase in fishing fees places a greater financial burden on the industry, requiring the company to carefully review its operations to cover increased fees while continuing to invest in the company’s infrastructure and value creation."
Thorsteinsson highlighted the fact that, from the outset, Samherji has placed strong emphasis on investments through the construction of new vessels, modern processing plants, and the implementation of new technological solutions across its operations. As a result, the investment ratio has remained high.
"Since I became a shareholder in the company in 2019, 88 per cent of the Samherji Group’s profits have been allocated to direct investments in fishing, processing and land-based aquaculture. The company’s strategy is to continue this path.
"The largest current project is the 'salmon garden', a new land-based aquaculture facility in Reykjanes, which will create a number of permanent, year-round jobs locally and significant export revenue."
Since 2023, prior to the equity private placement for the salmon garden project in Reykjanes, Samherji has invested more than €48 million (US$56 million) in land-based aquaculture. This investment includes the expansion of the facility in Öxarfjördur, Northeast Iceland, and the implementation of new technology that will also be used in the salmon garden.
The total equity raised for the salmon garden, with signed subscription agreements, already amounts to €210 million (US$240 million), with Samherji contributing nearly half of the equity and the remainder covered by external investors. Construction of the first phase of the facility is scheduled for completion in the spring of 2027.
Thorsteinsson pointed out that since 2019, the average dividend payout ratio has been 2.5 per cent of profits. In 2024, this ratio was seven per cent, but for several years, no dividend was paid to shareholders due to extensive reinvestment in core operations.