Investor Presentaiton
ICELAND
ISI SEAFOOD
Q1 2020 Results
Presentation to Investors
and Analysts
οι
AS
NORTH SHIELD
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08
GILLIE
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Negative short term impact of COVID-19
Mid-long term impact uncertain
Create interesting growth opportunities
Results in Q1 were marked by the The financial and operational
outbreak of Covid19 and actions taken strength of Iceland Seafood has
to control the outbreak and Q2 will be enabled the company to manage the
severly impacted. The Group base situation effectively. Among key
scenario expect sales to start to
actions taken are:
recover in Q3 and to be on track in Q4
.
Lion's share of sales in S-Europe are to the HORECA
sector. Around 1/3 of sales in UK are to the
Foodservice sector. Both sectors are significantly
impacted by the situation,
Sales in S&D division have been c.a. 40% of normal
level, reduction in demand in all markets and
product categories,
Retail sales have been strong from Mid March which
has helped mitigating the impact,
Important steps have been taken in key markets to
ease restrictions and further steps to be taken in the
coming weeks,
With important activities related to the foodservice
sector opening up (canteens, schools, restaurants,
hotels etc), sales in key markets are expected to
improve in the coming weeks and months,
Results in Q1 were marked ty the current situation
and Q2 will be severely impacted as well. The Group
base scenario expect sales to start recover in Q3 and
to be on track in Q4.
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1. Appropriate contingency plans have been
implemented within group businesses with focus on
health and safety of employees and to secure
continuity of operation,
2. Risk management controls have been tightened,
with focus on key assets on the balance sheet,
receivables and inventories. Over 90% of the Group
receivables are credit insured, inventories mainly
consist of frozen products,
3. Actions to secure liquidity and ongoing funding in
good cooperation with banks in Iceland and Spain.
New long-term funding for operation in Spain
secured in April, 3-5 year loans at 1.4-1.8% interest
rate and total amount in excess of €17m. Actions
were taken to improve headroom for the other part
of the Group as well,
4. Leverage Iceland Seafood's strong position to act on
opportunities that come up in the situation, both.
with regards to short term opportunities related to
sourcing and marketing and longer term strategic
opportunities.View entire presentation