Q2 2022 Presentation to Investors and Analysts
ICELAND
ISI SEAFOOD
Q2 2022
Presentation to Investors
and Analysts
Extreme cost increases impacting the operation
of IS UK
Results impacted by severe cost
increases and disruptive supply chain
•
All UK operations moved into a single location at
year end 2020. The merger process and
integration has proven to be more costly and
complex than anticipated, severely impacted by
external challenges (Brexit, Covid19, severe cost
increases this year),
Production continued to be affected by difficult.
labour market and Covid situation in the beginning
of the year but improved from beginning of March,
Extreme cost increases of almost all input factors
having significant negative impact on the operation,
Price increases have generally been accepted by
customers, but with time delays. As price increases
have come into affect, more input cost has
occurred,
Price increases are negatively impacting demand.
In some cases products have been delisted
consequently,
Increased tariffs and reluctance in the market
against Russian origin products having negative
impacts in the short term but brings opportunities
in the mid/longer term.
8
New management team in place. Main
emphasis on credibility towards retail
and stabilising the operation
.
•
•
•
Glen was previously the Production Director of
Hilton (former Icelandic Seachill), for 20 years,
managing over 1,400 employees across three
factories,
The management team has been strengthened in
various positions during 1H 2022. People with
retail processing and commercial experience have
joined the business, many of them have worked
successfully together in their previous jobs,
Key focus points of the team in the short term
are:
To stabilize and improve efficiency in the operation and quality
of the production. Steps have been taken in that direction but
there is still a way to go,
To push through price increases to customers. This takes time,
and occasionally leads to delisting of products,
Grow the business with both current and new customers, with
increased focus on leveraging the Groups sourcing position in
Iceland. This will require investments in automation and
processing equipment.,
At the same time the long term vision and
strategy of the business is being reviewed.View entire presentation