Investor Presentaiton
Price increases are reflected in increased turnover
but lower volume and lower margins
ICELAND
ISI SEAFOOD
Q3 2022
Presentation to Investors
and Analysts
The decreased purchasing power of consumers negatively
impacts the demand
•
400
350
319,6
Raw material price increases have levelled off, and in some instances, prices
have started to decline, e.g., salmon prices,
300
250
Group sales growth driven by price increases (€'m)
37,2
(5.8)
10,6
362,8
•
•
•
•
Big pushback on price increases from both retail and food service. Cost
increases have not yet fully been reflected in consumer prices,
Price volatility is expected to continue for the coming months, driven by the
opposing factors of a decrease in fishing quotas and disruptive supply chains.
on one side but economic decline and diminishing consumer purchasing
power on the other side,
We are starting to see disruptions in distribution with temporary strikes and
consequently increased uncertainty in relation to the ability to deliver goods,
Both logistics and cold store costs are severely impacted by higher energy
prices and are now passed on directly as a surcharge. A limited supply of
both cold storage facilities and truck drivers,
These disruptions and cost increases are impacting margins,
On the other hand, it is likely that value-added production will move closer
to consumers. Output in Europe will become more competitive, where
automation and investments in production efficiencies will play a key role.
Iceland Seafood is in an excellent position to benefit from this development,
The operation of Iceland Seafood is well-balanced. The company is in an
excellent position to address challenges and utilise opportunities that will
arise due to its solid sourcing base and value-added operations close to key
markets.
5
200
150
100
50
Sales 9M 21
Price increases
* Addition of Ahumados Dominguez and closing of IS USA in 2021
Volume decrease
Changes to Group*
Sales 9M 22
Investments in the future can be segmented into three
main categories:
•
•
Investments connected with sustainability matters. E.g., Solar Panels,
waste management, water treatment, etc. Emissions and waste
management will be measured and reported from the beginning of 2023,
Investments connected with automation and operational efficiency. This is
key in driving efficiency, further enhancing consistency, and increasing
competitiveness,
Marketing and branding investments, Iceland Seafood has invested
in companies with retail or consumer brands (Carr&Sons, Ahumados
Domínguez). The Group plans to further invest in the brands it holds and
increase their value.View entire presentation