Q2 2022 Presentation to Investors and Analysts slide image

Q2 2022 Presentation to Investors and Analysts

ISI ICELAND SEAFOOD Q2 2022 Presentation to Investors and Analysts > > VA N-Europe Unprecedented price increases having a VA S-Europe severe negative impact on results both in UK and Ireland in the period € m's Q2 22 Q2 21 1H 22 1H 21 Sales 28.2 31.6 56.8 63.4 Net margin (0.8) 2.1 (0.9) 5.2 Normalised EBITDA (2.9) 0.3 (4.9) 1.5 Normalised PBT* (3.8) (0.6) (6.7) (0.4) *Normalised PBT represents Profits before tax before allowing for significant items. Salmon prices (€/kg) 5,40 H&G cod frozen prices (US$/kg) 2019 2020 2021 2022 5,61 5,55 5,51 5,23 5,06 Sales in 1H 2022 down €6.6m on same period last year • 11,5 2019 2020 2021 2022 5,90 10,82 11,0 10,5 10,52 10,0 10,05 9,5 9,0 8,57 8,5 8,28 4,90 8,0 7,68 7,46 7,2 7,5 7,1 7,02 4,55 6,95 7,0 4,5 4,48 6,58 6,38 4,44 4,44 6,5 6,4 6,95 6,3 6,25 4,40 6,0 5,69 6,4 6,09 4,24 4,29 4,27 4,35 4,32 4,40 4,17 4,24 5,63 6,72 6,15 5,51 4,32 4,33 4,13 4,38 5,5 5,5 5,13 4,09 3,98 4,01 4,9- 5,4 5,64 3,92 3,92 4,01 5,0 5,6 3,91 4,04 4,26 4,29 5,54 5,25 5,05 5,1 3,90 5,1 5,18 3,74 3,69 3,98 3,80 4,5 5,08 4,7 4,8 4,0 4,6 4,5 4,5 4,54 3,79 3,83 3,80 3,71 3,73 3,76 Jan Feb March April May June July Agu Sept Okt Nov Dec 3,58 3,40 Jan Feb March April May June July Agu Sept Okt Nov Dec Demand in Ireland unusually strong in 1H 2021, due to lockdown restrictions on restaurant activity and strong position of our Irish operation post Brexit. This affects comparison with prior year, The price increases that have been pushed through in the period, have had negative impact on demand. Sold volume in Ireland 16% down on same period last year, Challenges in production and disruptive supply chains negatively impacted service levels and launching of new products in UK in the period. > Sales & Distribution Results severely impacted by price • increases in the period Significant and rapid price increases in all areas negatively impacted results in the period, The division mostly relies on sales to retail customers, it takes longer to pass on price increases to customers in retail than foodservice, IS UK business was loss making in the period. Continuing impact of challenging external environment. Outbreak of Omicron in the beginning of the year had disruptive impact on both operations and logistics. Price increases of various input factors had significant impact on margins, Results in Ireland especially impacted by sharp salmon price increase in the period. These prices have now levelled. off, at the same time cost increases have been passed on to customers. Performance of the Irish business expected to be back to normal levels. from Q3. Source: SeaData Center Source: Norges Sjomatrad 11
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