ISI Seafood Q3 2022 Results slide image

ISI Seafood Q3 2022 Results

• . • • • • ISI ICELAND SEAFOOD Q3 2022 Presentation to Investors and Analysts Revised outlook range for Normalised PBT €3.0-5.0m, excluding IS UK operation for the last two months of the year As the decision has been taken to exit the value-added operation in the UK, the outlook range excludes any impact from IS UK in November and December, After a complex 1H of the year, specific prices levelled off in Q3, especially salmon prices. Prices of whitefish continued to rise in Q3 but seem to have topped, The high prices and the diminishing consumer purchasing power due to increased energy prices and high inflation have started to impact demand negatively. Sales in key markets have been weaker in Q4 than anticipated, However, the outlook for the Christmas season remains positive both for Ireland and Ahumados Dominguez in Spain, although it is uncertain if and then to what extent high prices and decreased purchasing power impacts consumers' Christmas spending, It is expected that the important Rawson fishing season in Argentina, which has just started, will not be as strong as last year, both in terms of volume and value, Disruptions and cost increases in various supply chains have impacted margins; this is expected to continue for the remainder of the year, At the same time, it is likely that production will move closer to home. Iceland Seafood is in an excellent position to benefit from this development with its value-added production facilities in Europe, Investments in automation and energy-saving projects are being implemented to address the difficult labour market and improve efficiency. These investments have short payback times, Group results are influenced by various external factors such as: • • • Fishing and quota changes, as well as price development and the ability to pass on price changes in the value chain, Changes in underlying global economic conditions, currency rates, import duty rates, access and cost of labour, competition and consumer behaviours, Political uncertainty and geopolitical turmoil. The current war between Russia and Ukraine and further sanctions and tariffs on Russian products, with repercussions, Covid19 development and critical factors indirectly impacted by the pandemic. 1,7 3,3 3,5 2,9 1,0 Full year Normalised PBT* (m's). 12,5 7,4 11,3 5,1 5,0 3,0 Revised outlook range for Normalised PBT of €3.0-5.0m for the year 2022 excludes the UK operation for the last two months of the year. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 With recent investments and projects that will increase efficiency and drive profit growth, the Group is in a solid position to reach its target of Normalised PBT of over €20m when the external environment stabilizes. 19
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