Q4 2022 results: All time high quarterly harvest volume

22 Feb 2023 06:30 CET

Bíldudalur, 22 February 2023

Icelandic Salmon is the parent company of Arnarlax, and other subsidiaries
involved in salmon farming and processing in Iceland. The companies are
collectively referred to as "Icelandic Salmon" or the "Group".

Continuous growth

The full year of 2022 and the fourth quarter of 2022 represent periods of record
growth in both harvest volume and revenues for Icelandic Salmon. During the
fourth quarter of 2022, the Group’s operating income amounted to EUR 51.7
million compared with EUR 35.8 million in the corresponding quarter of 2021.
Icelandic Salmon’s operating income for 2022 amounted to EUR 157.6 million
compared with EUR 90.8 million in 2021. An impressive topline growth of 74%

“The second half of 2022 has followed the strong results we achieved in the
first half of the year. We are starting to reap the benefits of our expanded
operations and achieved significant growth in the final quarter and last year.
We are entering 2023 with a strong financial position and as a proud contributor
to the Icelandic economy and society,”, commented Björn Hembre, CEO of Icelandic
Salmon and Arnarlax.

Operational EBIT for the fourth quarter was EUR 9.3 million compared with EUR
3.65 million in the fourth quarter of 2021. The Group’s operational EBIT for
2022 amounted to EUR 36.15 million compared with EUR 7.3 million in 2021. This
has resulted in an operational EBIT per kilo of EUR 1.55 in the quarter, up from
EUR 0.86 in the corresponding quarter of 2021. The Group’s operational EBIT per
kilo in 2022 amounted to EUR 2.24 compared with EUR 0.63 in 2021.

Icelandic Salmon harvested 6,008 tons in the fourth quarter, representing the
Group’s highest harvesting volume in a quarter, compared with 4,272 tons in the
fourth quarter of 2021. The Group’s harvest volume for the full year amounted to
16,138 tons and has increased by 40 per cent when compared to 2021.

The Group has maintained cost control with regard to harvesting and reduced
costs between the third and fourth quarters of 2022. Costs are expected to
increase in 2023 as a result of increased prices for raw materials.

Dynamic and maturing market

The North American market for salmon offers an interesting position for
Icelandic Salmon as majority of salmon is transported by air into this market,
resulting in high carbon footprint and cost. As Iceland´s main entry into the
market is by sea, CO2 footprint and cost is considerably reduced. This, along
with rapid growth of the market in the last few years and relatively low, but
growing, seafood consumption per capita, offers an interesting opportunity for
Icelandic Salmon.

The Group has continued to expand its geographical reach and supplies its
products to countries across Europe, North America and Asia. In the fourth
quarter, Icelandic Salmon delivered its highest volume yet to the US. Europe
remains the Group’s main market, but the US and Canadian markets are expected to
continue to grow in the coming years.

As a result of the Group’s low share of fixed-price contracts, Iceland Salmon
has achieved good market prices with high spot prices. This is also partly due
to larger-sized fish being harvested in the fourth quarter, which has
contributed to higher prices in the market. There were some negative price
effects of increased quality downgrades at the end of the fourth quarter.

The past 12 months were also the Group’s first full year offering its pre-rigor
fillets and demand has steadily increased throughout the year.

Increased access to smolt

As part of the Group’s growth strategy, the Group acquired the remaining share
of the Ísþór smolt plant in 2022. This has enabled Icelandic Salmon to access a
higher number of larger post smolts to fully utilize its seawater licenses in
the coming years. Increased size of smolts will reduce time in sea and
considerably increase MAB utilization. The Group expects to see the effect of
this in smolt output, which will be transferred to harvest volumes in 2024. The
Group also received another site approval as part of its 12,200-ton license in
Patreksfjörður and Tálknafjörður which is important to increase the MAB
utilization. In parallel, the Group invested in additional sea equipment in the
year to support its increase in smolt output in the coming years.

Updated guidance

The Group´s guidance for 2023 is 16,000 tons in harvesting volume, and expects a
significant volume growth in 2024.


For further information, please contact:

CEO Björn Hembre
Tel: +47 913 47 432
Email: bjorn@arnarlax.is

CFO Jónas Heiðar Birgisson
Tel: +354 414 0609
Email: jonas@arnarlax.is

More information:
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583148_Q4_2022 - Icelandic Salmon Presentation.pdf