Q2 2022 Presentation to Investors and Analysts
ICELAND
ISI SEAFOOD
Q2 2022
Presentation to Investors
and Analysts
Cost increases and shortage of supply has been the
main drivers for negative performance in Q2 & H1
Increased political risk and disruptive supply chains bringing
on challenges and opening up opportunities at the same time
Significant and rapid price increases in all areas during 1H 2022, driven by
strong demand and unstable supply. Prices have leveled off in certain areas,
These price increases impacted Iceland Seafood negatively, especially in
areas that relies on retail sales. It takes longer time to pass the cost on in
retail than foodservice,
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Price volatility is expected to continue for the coming months with the
contrary drivers of decrease in fishing quotas and disruptive supply chains on
one side, but economic decline and diminishing consumer purchasing power
on the other side having an impact,
Due to Covid19 and geopolitical turmoil, it is expected that price volatility and
disruptions in various supply chains will continue for the coming months,
with increased prospects of deglobalization,
This will have negative impact on profitability of the sector in general, as
companies are likely to carry higher inventories and diversify the supply base
further to manage the underlying risk,
On the other hand, it is likely that production will move closer to consumers.
Production in Europe will become more competitive where automation and
investments in production efficiencies will play a key role. Iceland Seafood is
in good position to benefit from this development,
The operation of Iceland Seafood is well balanced. The company is in good
position to address challenges and utilize opportunities that will arise, due to
its strong sourcing base and value-added operations close to key markets.
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200
150
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208.3
Sales 1H 21
Group sales growth driven by price increases (€'m)
32.2
(8.9)
238.4
6.7
Price increases
Volume decrease Changes to Group
Sales 1H 22
Investments going forward can be segmented into three
main categories:
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Investments connected with sustainability matters. E.g., Solar Panels,
waste management, water treatment etc. Emissions and waste
management will be measured and reported from beginning of 2023,
Investments connected with automation and operational efficiency. This is
key in driving efficiency, further enhancing consistency and increasing
competitiveness,
Marketing and branding investments, Iceland Seafood has invested.
in companies with retail or consumer brands (Carr&Sons, Ahumados
Domínguez). The Group plans to further invest in the brands it holds and
increase their value.
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