ISI Seafood Q1 2023 Investor Presentation
.
•
ICELAND
ISI SEAFOOD
Q1 2023
Presentation to Investors
and Analysts
Outlook range for Normalised PBT revised to €7.5-
11.5m, excluding impacts from IS UK operation
As the IS UK operation is classified as discontinued, the results from that
operation have been excluded from both historical numbers and outlook range,
Prices of seafood remains high and have increased more than other animal
proteins. This has decreased demand reflected in lower volumes. After strong
sales in S-Europe in March, demand dropped in April partly due to seasonality.
Outlook for the coming tourism season in Spain is good, which should positively
impact demand,
Salmon prices have come down after a sharp increase in Q1 23 and based on
forward prices further decrease should come through in the coming months.
Performance of the operation in Ireland and Ahumados Domínguez in Spain is
expected to be back to normal levels from May onwards,
After a disruptive period during the last three years, it is likely that production
will move closer to home. Iceland Seafood is in an excellent 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 the difficult labour market and improve efficiency. These
investments have a short payback times,
Outlook range for Normalised PBT of €7.5-11.5m for 2023; the higher end
assumes that economic conditions will improve in the year's second half,
leading to improved sales and margins,
Results for IS UK are excluded from Outlook. A negative market trend, where
volume has declined due to a significant consumer price increase, will impact
Q2-Q3 results. Revised management forecast estimates a loss from
discontinued operation in the range of £4.0m-4.5m for 2023 (£2.0m adverse
from previous forecast), but positive EBIT level from Q4 onwards.
Group results are influenced by various
external factors such as:
•
Fishing and quota changes, as well as price
development and the 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.
The current war between Russia and Ukraine
and further sanctions and tariffs on Russian
products, with repercussions,
2,4
2,0
2,0
0,4
2014
2015
2016
2017
4,8
2018
9,9
Full year Normalised PBT*
(m's)
19,5
12,4
11,5
7,5
7,5
2019
2020
2021
2022
2023
*Normalised PBT excluding UK operation for the whole period
With recent investments and projects that will increase efficiency and drive profit growth, the Group is in a solid position to reach
its target of a Normalised PBT of over €20m when the external environment stabilizes.
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