Iceland Seafood International Revises 2026 Earnings Forecast Lower
News related to:Iceland Seafood International hf · 1 min read
Iceland Seafood International hf. has adjusted its financial forecast for 2026, projecting a Normalised Profit Before Tax (PBT) range of EUR 8.5-10.5 million. This revised outlook is in line with the company's 2025 result but falls short of the previously announced target of EUR 11.5-13.5 million.
The company attributes the lower-than-expected earnings to the underperformance of its operations in Argentina. Specifically, the freezer trawlers' operations were significantly impacted by mechanical breakdowns, leading to reduced catch volumes and weaker overall performance. Additionally, the land-based operations in Argentina also contributed to the reduced earnings, while the French operations experienced a bad debt of approximately EUR 0.5 million, further dampening the financial outlook.
Despite these challenges, management has taken steps to mitigate risks and improve operational efficiency. According to the company, these measures are aimed at preventing similar issues from affecting performance in the future. However, the fourth quarter remains crucial, as it is the most significant period for the company's operations. The start of the upcoming Rawson season in Argentina will be a key factor in determining the final outcome for the year.
The potential sale of Ahumados Domínguez is still pending, and the outcome remains uncertain. The revised earnings forecast does not factor in any potential impact from this sale.
Management has stated that the fourth quarter is the most important for the Group's operations, and there remains some uncertainty regarding the full-year result. Performance in the fourth quarter, including the start of the upcoming Rawson season in Argentina, will be an important factor in determining where within the revised earnings range the full-year result will fall.