Q2 2024 Icelandic Salmon AS Earnings Call Transcript
Key Points
- Icelandic Salmon AS (OISE:ISLAX) has implemented new procedures for lice control and introduced new vaccines, which have shown promising results in mitigating biological challenges.
- The company received a new license for 10,000 tonnes of sterile salmon, expanding its operational capacity.
- There is continued strong demand for Icelandic Salmon in the market, with the product being recognized for its high quality and sustainability.
- The company has a strong financial position with an equity ratio of 65% and compliance with all covenants.
- Icelandic Salmon AS (OISE:ISLAX) is focusing on growth and investments to handle operations more efficiently and utilize its licenses further.
- The company faced significant biological challenges in the second quarter, resulting in a negative operational EBIT of EUR3.8 million.
- Harvest volumes were low, with only 702 tonnes harvested compared to 88 tonnes in the same quarter of the previous year.
- The biological challenges led to a high mortality rate, affecting future harvest volumes, particularly for 2025.
- The reassessment of stock value due to biological challenges impacted EBIT by EUR2.3 million.
- There was a decrease in demand in the North American market, with only 11% of volume sold to the US compared to 18% for the full year 2023.
Welcome, everyone, and thank you all for taking time to watch this quarter two presentation for Icelandic Salmon. We are strong believers that the second quarter marks the end of an extraordinary period for our company. As you know, and as you will hear and see several times during our presentation or operations and KPIs have been heavily affected by biological challenges over the past nine months.
The challenges combined with low harvest volume have resulted in weak operational EBIT and EBIT per kilo. The biological challenges seem so far to be behind us, we will increase harvesting in the second half of the year. Smolt output is going according to plan, and we have implemented new procedures for lice control and we have introduced new vaccines and also very important.
We have we see continued good demand for Icelandic Salmon in the market. I will say more about this later in the presentation. But first, let me remind you about who we are. Icelandic Salmon AS is a listed company on the Euronext Growth
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