Iceland Seafood International hf: Q1 2025 Results: Continued Operational Recovery and Refinancing in The Final Stages

Core Viewpoint - The company is experiencing operational recovery and is in the final stages of refinancing, with positive sales growth across divisions despite challenges in supply and currency fluctuations [1][5][9]. Sales Performance - The VA S-Europe division reported sales of €57.1 million, a 2.3% increase from the previous year, with a normalized profit before tax (PBT) of €2.3 million, up €0.2 million from Q1 2024 [2]. - The VA N-Europe division achieved sales of €14.4 million, an 11% increase year-over-year, with a net profit before tax (NPBT) of €76,000, improving from a loss of €35,000 in Q1 2024 [3]. - The S&D division's sales reached €51.1 million, a 4.7% increase compared to last year, maintaining profitability similar to Q1 2024 [4]. Financial Highlights - Normalized profit before tax for Q1 2025 was €2.3 million, compared to €1.9 million for Q1 2024, with total sales of €119.3 million, up 4.8% from the previous year [7]. - Net profit for Q1 2025 was €1.0 million, significantly up from €0.1 million in Q1 2024, with basic earnings per share (EPS) of €0.0324 cents per thousand shares compared to €0.0025 cents [7]. - The company’s total assets at the end of March 2025 were €256.2 million, an increase of €2.3 million since the beginning of the year, with an equity ratio of 29.9% [7]. Outlook and Challenges - The normalized PBT outlook for 2025 is maintained at €7.5 million to €9.5 million, with expectations of high cod prices and stable salmon prices throughout the year [5][8]. - The CEO highlighted challenges in the supply chain due to decreasing quotas for cod and the need to refinance about half of the company’s interest-bearing debt in Q2 [6]. - The company is focused on strengthening its supply chain, improving financial structure, and reducing interest costs to build a more resilient foundation for future growth [6][10]. Refinancing Efforts - The refinancing process is nearing completion, with successful renewal and extension of credit facilities and a recent unsecured bond issuance raising ISK 4,000 million (approximately €27.6 million) [9]. - The refinancing is expected to lower interest expenses from June 2025 onward, with ongoing efforts to further reduce interest costs [9].