Release Date: May 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Icelandic Salmon AS (OISE:ISLAX, Financial) is on track to deliver an all-time high smolt output in 2025, both in terms of number and average weight.
- The company has implemented effective lice control measures, including preventive measures like lice skirts and the use of lumpfish and stingray lasers.
- There is a significant build-up of biomass planned for 2025, which is expected to reduce production costs.
- The company expects a lower cost level in 2025 compared to 2024, driven by increased volume and lower feed costs.
- Icelandic Salmon AS (OISE:ISLAX) continues to experience strong demand for its products despite global market challenges.
Negative Points
- The company faced a challenging biological situation in seawater in Q1 2025, leading to a lower harvest volume compared to the previous year.
- EBIT for the quarter was negative at €-3 million, down from €-0.2 million in the first quarter of the previous year.
- The average weight of harvested fish was low due to early harvesting to safeguard fish welfare.
- The company is concerned about new toll tariffs implemented by the United States, which could reduce salmon consumption and price achievement in the US market.
- There is uncertainty regarding the approval of a 10,000-ton license for sterile salmon, which was revoked and is currently under review.
Q & A Highlights
Q: Can you comment on the lice situation and the capacity to manage it this summer?
A: We are well-prepared with preventive measures like lice skirts on all smolts, using lumpfish, and stingray lasers, which have shown positive results. We also have access to thermal treatment and medical options if necessary. Overall, we feel confident in our ability to control lice this season. - Bjorn Hembre, CEO
Q: Is it reasonable to expect a smolt release of 6 million this year?
A: We will not reach 6 million smolts this year. We've adjusted production plans to improve sea biology, increasing average weight and optimizing smolt quality. The current smolt quality looks promising, and we have high expectations. - Bjorn Hembre, CEO
Q: How will Q2 harvest compare to Q2 2024 and Q1 2025?
A: We expect approximately double the volume in Q2 2025 compared to Q1 2025. The average weight of the fish will also increase in Q2 and further in the second half of the year. - Bjorn Hembre, CEO
Q: Can you comment on the capital expenditure (CapEx) plans for this year and next?
A: We have reached capacity in smolt production, so the focus will shift to seawater production and site preparation to increase capacity. - Jonas Birgisson, CFO
Q: What changes are expected in Icelandic farming this autumn?
A: The law proposal from last year, which allows for industry growth based on performance indicators like low escapes and mortality, is expected to be revisited. The main concern is the development of tax policies, which need to support the industry's growth and competitiveness. - Bjorn Hembre, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
