Investor Presentaiton slide image

Investor Presentaiton

ISI ICELAND SEAFOOD Q3 2020 Results Presentation to Investors and Analysts Increased uncertainty due to negative Covid19 development in key markets • After significant reduction in sales during Q2, sales recovered strongly during Q3, The restrictions that have been put in place in key markets to control current Covid19 wave are severally impacting sales, especially in S-Europe, As the recent restrictions are not as strict as these implemented in March-May, the impact on sales is not of the same level, Increased costs due to higher inventory levels, disruption in supply chains and various contingency plans, Price developments have impact margins negatively and are expected to continue to do so in Q4, Strong retail sales have helped managing the situation. Improved balance between retail and foodservice being created recent investments in VA N-Europe division, Previous Outlook range withdrawn due to ongoing uncertainty. Trading update to be published in December The last two months of the year an important trading period in key businesses December is a key sales period for smoked salmon in Ireland. This period becomes even more important with the acquisition of Carr & Sons, Outlook for Ireland is good, as retail consumption has increased considerably due to Covid19 restrictions, Rawson season in Argentina started in November this year. Sales of significant part of the planned production in Q4 has already been contracted with customers, Shellfish consumption in UK and saltfish. consumption in S-Europe also high during Christmas and should positively impact sales, 50,0 45,0 GROUP MONTHLY SALES 2020 VS. 2019 (€'M) 43,0 39,5 2020 2019 44,3 40,0 38,3 37,2 36,8 32,4 33,8 32,1 30,1 35,6 34,5 32,8 29,2 35,0 36,6 30,0 25,0 20,0 Jan Feb Mar 21,1 23,2 Apr 29,8 32,4 28,8 May Jun Jul Aug 35,8 32,5 Sep Oct Nov Dec * Group sales on a like for like basis, excluding Elba and Ecomsa Number of factors that will positively drive profits in Q4 (especially Ireland with 100% retail focus and Argentina where shrimps are in good demand), at the same time as impacts of Covid19 restrictions are evident. Although positive profits are expected in the quarter, the previously announced profit outlook range for 2020 is withdrawn due to the high uncertainty. A trading update will be published in December when more clarity is obtained.
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