Icelandic Salmon cites low harvest volumes leading to YOY drop in revenues, income in Q4 2024
Salmon farming and processing company Icelandic Salmon posted an operating income of €49.9 million (US$52.2 million) in the fourth quarter of 2024, a decline from €51.6 million (US$54 million) in the same period in the preceding year.
The company said the decline in revenues year-over-year was mainly driven by lower harvest volumes.
Operational EBIT for Q4 2024 was €1.4 million (US$1.5 million), compared with €2 million (US$2.09 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 €0.22 (US$0.23. Adjusted for the one-off cost, EBIT/kg was €0.31 (US$0.32).
Operations
In the Q4 2024, Icelandic Salmon harvested 6,455 tonnes, compared to 7,219 tonnes in the same quarter last year. Harvest volumes have increased from the low levels of the previous quarters in 2024.
"Our team’s efforts have enabled us to end a challenging year on a positive note," said Björn Hembre, CEO of Icelandic Salmon. "We stabilised the biological situation, strengthened sea lice control, and achieved good growth in our biological assets.
"With increased harvest volume and harvest weight, solid price achievement, and strong performance on smolt released into sea, we are on the right path."
Strategic events
Icelandic Salmon said it continues to work closely with Icelandic authorities to reinstate a license for 10,000 tonnes MAB of sterile salmon in Ísafjarðardjúp, which was revoked in Q3.
The company claims 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 utilisation 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.
As previously guided, Icelandic Salmon expects the biological challenges faced in 2024 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.
