Q2 2022 Presentation to Investors and Analysts
ICELAND
ISI SEAFOOD
Q2 2022
Presentation to Investors
and Analysts
•
Revised outlook range for Normalised PBT €9.0-
14.0m (previously €11.0-16.0m)
1H 2022 results impacted by extreme price increases of all input factors in
the period. The operation of IS UK was loss making in the period, has become
clear that it will take longer and cost more to stabilize the operation than
previously estimated,
Certain prices have levelled off, e.g. salmon prices have decreased after
reaching all time high in May. Performance of our Irish operation and
Ahumados Domínguez in Spain expected to be back to normal levels from
Q3 onwards,
However, the current political instability and disruptive supply chains is
causing increased uncertainty and volatility in pricing of various input factors,
Disruptions and cost increases in various supply chains are expecting to
continue, with increased prospects of deglobalization. This will negatively
impact efficiency and profitability of the sector, as companies are likely to
carry higher inventories and diversify their supply base to mange underlying
risk,
At the same time, it is likely that production will move closer to home.
Iceland Seafood is in good 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 difficult labour market and improve efficiency.
These investments have short payback time,
Revised outlook range for Normalised PBT of €9.0-14.0m for the year 2022.
This is based on the assumption that prices of key input factors will not be
as volatile as in 1H 2022,
Q4 is a key trading period for the Group, in terms of smoked salmon, light
salted cod and Argentinean shrimp. Majority of the projected profit is
expected to be generated during that quarter.
Group results are influenced by various
external factors such as:
•
•
Fishing and quota changes as well as price
development and 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.
Current war between Russia and Ukraine and
further sanctions and tariffs on Russian
products, with repercussions,
Covid19 development and key factors
indirectly impacted by the pandemic.
1.7
2.9
1.0
Full year
Normalised PBT* (m's)
3.5
3.3
7.4
11.3
5.1
12.5
14,0
9,0
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 strong position to reach it's
target of Normalised PBT in excess of €20m when the external environment and the UK operation stabilizes.
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