Iceland Seafood International hf. - Half Year financial report

Iceland Seafood International hf.: 1H 2017 Results

Solid performance despite 10 week fisherman's strike with strong second half of
the year projections leading to robust year on year organic growth

  * Revenues for 1H 2017 of €116m.
  * Normalised PBT of €1.3m was €0.4m down from 1H 2016.
  * Net profit of €0.9m was down €0.3m from 1H 2016.
  * Net debt level of €36.9m, reduced by 4% over the last 12 months.
  * Equity ratio improved to 20.0% compared with 17.8% in June 2016.


Helgi Anton Eiríksson, CEO

"Strong results for the first half of the year given headwinds of strike in
Iceland, Brexit devaluation of Sterling and strengthening ISK, with significant
contribution from both operating divisions to these results.

Whilst the strike impact on turnover was a reduction of €9m, organic growth with
new listings and new customers generated an incremental €6m of sales reducing
the year on year sales decline to €3m.

Compared with the first half of 2016, we have seen a far weaker British pound
following the Brexit vote, this reduced our UK results when they are converted
into Euro's for Group reporting. As has been widely reported the ISK has also
strengthened considerably during this period and whilst less than 2% of our
total costs are incurred in ISK this has also impacted profitability in the
1(st) half of the year versus last year. Without the combined effects of the
strike and currency movements normalized Profit before tax would have been €0.6m
higher than reported.

The Value Added division saw normalized Profit before tax of €1.6m, broadly in
line with the prior year despite the impacts of the strike and currency
movements, benefiting from a number of new listings which will continue to boost
this division's results in the remainder of 2017. During the period we also
completed our shellfish packing investment in the UK.

The Sales and Distribution division saw normalized Profit before tax of €0.5m,
down €0.2m on the prior year, with the strike and currency impacts mentioned
above affecting these results. Despite these challenges the division has
successfully broadened its customer base, seeing sales to North America increase
25%. With increased quotas in Iceland and quota transferred to the 17/18 season
due to the strike, the profit outlook for the 2(nd) half of the year is positive
for the Sales & Distribution division.

Management currently projects full year normalized Profit before tax in the
range of €3.5 - 3.7m, up from €3.3m in the prior year.

The Group continues to actively work on potential acquisition opportunities in
Europe, which combined with the strong organic growth forecasted in 2017 will
provide an excellent platform for accelerated profit delivery going forwards."

Investor meeting

On September 1(st) at 8.30 am (GMT), Iceland Seafood International hf will host
a meeting for market participants and investors, where management will present
and discuss half year results.  The meeting will be held at Hilton Reykjavík
Nordica, Suðurlandsbraut 2, 108 Reykjavík.



Disclaimer

This announcement is furnished and intended for European market participants and
should be viewed in that manner.

Any potential forward looking statements contained in this announcement are
reflective of management's current views on future events and performance,
whilst the views are based on positions that management believes are reasonable
there is no assurances that these events and views will be achieved. Forward
looking views naturally involve uncertainties and risk and consequently actual
results may differ to the statements or views expressed.








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Attachments:

ISI Interim Financial Statements - 1H 2017.pdf