Sildarvinnslan Q2 2025 slides: Revenue jumps 26%, profits surge despite lower volumes

Introduction & Market Context

Sildarvinnslan hf (ICE:SVN) reported a strong financial performance for the second quarter of 2025, with significant revenue growth and a substantial improvement in profitability despite lower catch volumes. The Icelandic fishing and seafood processing company released its Q2 2025 presentation on August 28, 2025, highlighting successful operations across its pelagic and demersal fishing segments.

The company’s shares closed at 74 ISK on the reporting date, trading well above its 52-week low of 69.5 ISK but still considerably below its 52-week high of 99.5 ISK.

Quarterly Performance Highlights

Sildarvinnslan delivered impressive financial results in Q2 2025, with operating revenue reaching $76.2 million, a 26.4% increase from $60.3 million in the same period last year. More notably, EBITDA more than doubled to $15.9 million from $6.6 million in Q2 2024, resulting in an EBITDA margin expansion to 20.8% from 10.9%.

As shown in the following key financial figures, the company returned to profitability with a net profit of $5.2 million, compared to a loss of $1.9 million in Q2 2024:

For the first half of 2025, Sildarvinnslan reported operating revenue of $158.8 million, up 12.1% from $141.7 million in H1 2024. EBITDA for the six-month period increased by 47.3% to $38.0 million, with the EBITDA margin improving to 23.9% from 18.2%. Net profit for H1 2025 reached $12.5 million, a 34.4% increase from $9.3 million in the same period last year.

The company’s income statement for Q2 2025 shows significant improvement across all key metrics, with operating profit increasing more than tenfold to $11.3 million from $1.1 million in Q2 2024:

A detailed analysis of the profit bridge for Q2 2025 reveals that the $7.1 million improvement in net profit was primarily driven by a $9.3 million increase in EBITDA, partially offset by higher income taxes:

For the first half of 2025, the profit bridge shows that the $3.1 million improvement in net profit was driven by a $12.2 million increase in EBITDA and positive contributions from financial items and exchange rate changes, partially offset by negative impacts from the value of by-products and share of affiliate companies:

Operational Performance

Sildarvinnslan achieved these strong financial results despite a decrease in catch volumes, which fell to 43.2 thousand tonnes in Q2 2025 from 50.3 thousand tonnes in Q2 2024. Production volumes also slightly decreased to 18.8 thousand tonnes from 19.8 thousand tonnes in the same period last year.

The company reported successful blue whiting fishing and processing operations, similar to 2024 levels, with retention of catch allowances for the autumn season. Sales of capelin products were also successful, contributing to the strong revenue performance.

The freezer trawler Blængur experienced high prices and good fishing, particularly for cod, haddock, and Greenland halibut products. The company’s land processing facility in Grindavík has returned to normal operations, further supporting the improved financial performance.

The EBITDA bridge for H1 2025 shows that both fishing operations (Útgerð) and land processing (Landvinnsla) contributed significantly to the EBITDA growth, with increases of $5.0 million and $6.9 million, respectively:

Financial Position

Sildarvinnslan maintained a strong financial position, with an improved equity ratio of 63.9% as of June 30, 2025, compared to 60.7% at the end of 2024. The company’s debt leverage, measured by NIBD/EBITDA, improved to 1.60 from 2.06 in 2024, indicating a stronger balance sheet.

The cash flow statement for H1 2025 shows that despite strong operational cash generation of $38.0 million before interest and taxes, the company’s cash position decreased to $85.5 million from $101.8 million at the beginning of the year, primarily due to significant investment activities of $66.1 million:

Market Conditions and Outlook

The company reported positive trends in pelagic markets, with good demand for mackerel, herring, and capelin products. The markets for fishmeal and oil products also showed favorable conditions, while demersal fish markets remained stable.

Looking ahead, Sildarvinnslan noted the commencement of the mackerel season and ongoing blue whiting fishing. However, the company also highlighted a reduction in cod quota, which could impact future catch volumes. Additionally, the company mentioned electricity shortages as a potential operational challenge.

Despite these challenges, Sildarvinnslan’s improved operational efficiency and strong financial position provide a solid foundation for continued performance in the coming quarters. The company’s ability to generate higher revenue and profitability despite lower catch volumes demonstrates its effective operational management and ability to capitalize on favorable market conditions.

Full presentation:

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