Reduced mortality sees Icelandic Salmon record Q4 EBIT of €3.8 million

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Improved price achievements and higher harvest volumes result in strong growth for Arnarlax.

On Friday, fish farmer Icelandic Salmon reported an operating income of €36 million, up from €16 million in the same period in 2020.

Icelandic Salmon is the Norwegian parent company of Arnarlax and other subsidiaries involved in salmon farming and processing in Iceland.

Operational EBIT in the quarter was €3.8 million, corresponding to €0.89 per kg, also a significant improvement from 2020.

For the full year, the company had an operating income of €91 million (2020: €62 million) and an operational EBIT of €7.8 million (2020 negative: €4.7 million).

Significantly improved biological results
According to the report released by the company, the 125 per cent increase is mainly a result of improved price achievements, higher harvest volume and better utilisation of licensed maximum allowable biomass (MAB).

Icelandic Salmon harvested 4,300 tonnes in the fourth quarter, representing an increase of 13 per cent compared to the same quarter in the previous year.

Björn Hembre, CEO of Icelandic Salmon and Arnarlax commented, “We have achieved significantly improved biological results in the fourth quarter, with steps taken to reduce mortality at sea and improve lice control. As a result, the operation has had significantly reduced mortality throughout 2021 and without major incidents, demonstrating that the steps taken to reduce risk and winter preparations are working as expected.”

Successful market strategy
Icelandic Salmon has continued its emphasis on sea transport of products to the US market, with a significant share of the production now serving the North American market. These efforts have proven to be a success, with high-quality ASC certified salmon reaching new clients even further into the US.

“Icelandic logistics routes offer a new choice for a low carbon footprint salmon in the US market, with good shelf life. We have seen our customer base expand, as buyers realise the benefits of our fresh and sustainably farmed salmon,” said Hembre.

The brand was launched during the fall of 2021 and has now been implemented in most markets, with full implementation continuing in 2022.

Better prices
“With more regular supply, high focus on efficient logistics and prioritising markets that look for high-quality, sustainable products, Arnarlax has achieved better prices and margins across all markets during 2021,” Hembre added.

Whereas there is no final decision yet with respect to the Group’s application for additional total allowable biomass, the planned expansion of current and new smolt facilities is proceeding as planned.

Icelandic Salmon expects to harvest 16,000 tonnes in 2022. The presentation for Q4 and the full year 2021 is attached.