Icelandic Salmon – Challenging first quarter

Icelandic Salmon AS Registered Shs

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Bíldudalur, 20 May 2025

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

In the first quarter, Icelandic Salmon experienced biological challenges at sea. To protect animal welfare, some volumes were harvested early at low average weights. Results were marked by mortality-related costs, low harvest volumes, and a weaker market due to increased global supply and lower prices.

Operating income for the quarter was EUR 10.4 million, down from EUR 27.5 million in the first quarter 2024. Operational EBIT was negative EUR 3.0 million, compared with negative EUR 0.5 million in the prior year. The EBIT/kg ended at negative EUR 2.68, compared to negative EUR 0.20 in the first quarter 2024. Adjusted for mortality-related one-offs, EBIT/kg was negative EUR 1.22.

"We faced biological setbacks this quarter at some sites. Our team responded early to safeguard animal welfare, which meant harvesting fish at lower weights. Low harvest volumes and tougher global markets impacted our first quarter results. We will continue to build biomass as planned and remain on track for a stronger second half of 2025,” said Björn Hembre, CEO of Icelandic Salmon.

Operations

In the first quarter 2025, Icelandic Salmon harvested 1,100 tonnes, compared to 2,800 tonnes in the same quarter last year. The reduction reflects early harvest and our strategic priority to build up biomass. Mortality-related costs amounted to EUR 1.6 million.

Smolt operations continued to perform well, and the Group remains on track to transfer a record-high number of smolt to sea in 2025. Capacity at our harvest plant was carefully aligned to match the planned production, and also reflecting the decision to increase biomass.

Strategic events

The Group continues to work closely with the authorities to reinstate a license for 10,000 tonnes MAB of sterile salmon in Ísafjarðardjúp, which was revoked in 2024. Efforts to secure larger sites for better MAB utilisation continue, expansion of sites in Arnarfjörður and a 4,500-tonne application in Arnarfjörður remains under review.

Investments in the quarter totaled EUR 4.4 million, mainly related to preparing biomass build up in sea.

Market and outlook

Icelandic Salmon continues to see solid demand for its salmon, but the quarter was affected by increased global supply and softer prices, especially for smaller-sized fish. Price achievement was impacted both by size mix and overall market conditions.

North America remains an important market for the Group, but low average weight led to reduced volume sold to this region, and sales to Europe increased. No significant impact from U.S. tariffs has been seen, though the situation and long term effects remains uncertain.

The Group maintains its 2025 harvest volume guidance of 15,000 tonnes. The first half of the year is expected to remain impacted by low volumes and high-cost levels, with improvements expected in the second half of 2025.

Presentation details

Attached is the presentation for the first quarter 2025.

The Group's CEO Bjørn Hembre and CFO Jónas Heiðar Birgisson will be presenting the Group's results today at 9:00 Icelandic time (11:00 CEST).

The presentation will be held in English via webcast, please copy and paste the following link into your browser: www.arnarlax.webcast.is (http://www.arnarlax.webcast.is). A recording of the presentation will be made available on the Group's website.

There will be a Q&A session after the presentations. Questions can be sent to questions@arnarlax.is  during the presentation. 

One-on-one meetings can be arranged either in our office in Kópavogur (Urðarhvarf 14) in the capital area or on Teams between 10:15 - 15:00 Icelandic time. If interested, please send an email to hjortur@arnarlax.is

For further information, please contact:
CEO Bjørn Hembre Tel: +354 620 1936
Email: bjorn@arnarlax.is

CFO Jónas Heiðar Birgisson Tel: +354 855 7760
Email: jonas@arnarlax.is

About Icelandic Salmon

Icelandic Salmon is dual-listed on the stock exchange market, both at the Euronext Growth in Oslo and Nasdaq First North in Reykjavík. The Group is the 100% owner of Arnarlax ehf, the leading farming company in Iceland with head office in Bíldudalur. The Group is fully integrated, from egg and until the fish is delivered to customers in the market, with control over all parts of the value chain.

See https://www.arnarlax.is for more information about the Group.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Attachment

• Q1_2025 - Icelandic Salmon Presentation