Eimskip: First quarter 2025 results

HIGHLIGHTS OF Q1 2025 RESULTS 

Seasonal fluctuations in the company's operations characterize the performance of the first quarter, which nevertheless improves year-on-year.

• Solid volume in the sailing system during the quarter, grew by 6.6%, while average freight rates remained unchanged from the previous year despite higher rates in Trans-Atlantic.
• The international freight forwarding performed well during the quarter, despite a decrease in volume, which was based on a favorable mix of projects.
• In other logistics services, activity decreased year-on-year, mainly due to lower utilization in the company's coldstore facilities, lower quotas, and lower customer’s inventory levels.

Revenue amounted to EUR 200.3 million, an increase of EUR 6.5 million or 3.4% when compared with Q1 2024

Expenses amounted to EUR 185.0 million, increasing by EUR 5.4 million or 3.0% from the previous year. 

• Wage costs increased by EUR 3.2 million year-on-year, equivalent to an 8.6% increase, mainly due to collective wage increases. The number of employees remained unchanged year-on-year.

EBITDA for the quarter amounted to EUR 15.3 million compared to EUR 14.2 million in the same period in 2024, an increase of 7.7%. The EBITDA margin was 7.7% compared to 7.3% in the same quarter last year.

Net earnings were negative, EUR 0.8 million for the quarter compared to positive earnings of EUR 0.5 million in the same period last year, mainly due to increases in depreciation and lower share of profit from affiliates.

Cash flow from operations during the quarter was strong, amounting to EUR 16 million, compared to EUR 2.7 million in the first quarter of 2024.

VILHELM MÁR THORSTEINSSON, CEO

"The first months of the year started off reasonably well, with moderate growth in EBITDA result in the first quarter which amounted to EUR 15.3 million, an increase of EUR 1.1 million from the previous year. Historically, the first quarter has the lowest activity in the company's operations, and this year, costly disruptions in operations due to unusually bad weather in the North Atlantic were added. However, there was a 6.6% increase in volume in the sailing system. The recent U.S. tariff policy has generated significant controversy and raised concerns about its impact on companies and the global economy. Nevertheless, the impact on Eimskip has remained minimal thus far.

The improved performance of the sailing system can be mainly attributed to increased volume and better utilization, along with a slight decrease in cost per transported unit. However, the changed cargo mix affected the average freight rate, which remained unchanged between years, despite higher average rates in Trans-Atlantic. We are pleased to see that the changes made to the sailing system in the first quarter of last year have resulted in fewer sailed miles and reduced oil consumption, offsetting general cost increases and inflationary pressures.

The performance of international freight forwarding was satisfactory, with EBITDA increasing to EUR 2.5 million from EUR 2.0 million last year, despite a 12% decrease in volume. The decrease in volume was mainly due to the turmoil in international markets due to impending tariffs to and from the United States. Additionally, there has been a shortage of containers in Asia among some of the major international shipping companies and congestion in some of their port operations worldwide, which affects the services we provide.

We saw quite good activity in trucking and terminal operations while utilization in warehousing decreased in the quarter due to our customers’ lower inventory levels of seafood products which impacted results.

As other companies in international operations, we have faced challenges associated with regulatory requirements and increasing uncertainty in international trade. It is concerning that, following an extended period of high interest rates and inflation in Iceland, there are now discussions about imposing additional tax burdens on both businesses and individuals.

Overall, we remain relatively optimistic about the months ahead, as we anticipate the usual seasonal fluctuations in our operations, with the second and third quarters typically with the highest activity level. Eimskip’s unique position in the North Atlantic provides a degree of resilience to economic fluctuations, as our home markets are heavily reliant on imports and exports primarily transported by sea. Additionally, our international freight forwarding efforts are centered on serving customers in transporting fresh and frozen food products."

INVESTOR MEETING 14 MAY 2025

Investors and market participants are invited to a meeting on Wednesday, 14 May 2025, at 8:30 a.m. at the Company’s headquarters, Sundabakki 2, second floor. Vilhelm Már Thorsteinsson, CEO and Rósa Guðmundsdóttir, CFO, will present the Company’s financial results for Q1 2025. The meeting will also be webcasted live in Icelandic at . An investor presentation and a recording of the meeting will be available on the Company’s investor relations website.

FURTHER INFORMATION

Rósa Guðmundsdóttir, CFO, tel: , email: .

Guðbjörg Birna Björnsdóttir, Head of Treasury and Investor Relations, tel: , email: 

FORWARD-LOOKING STATEMENTS

Statements contained in this financial press release that refer to the Company’s estimated or anticipated future results or future activities are forward-looking statements which reflect the company’s current analysis of existing trends, information and plans. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of resources, the timing and effect of regulatory actions and other factors. Eimskip undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

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