Consolidated Financial Statements
for the year ending 31 December 2021
TIN 611088-1329
Contents
Page
Independent Auditor's Report of the Consolidated Financial Statements .......................................................
2-5
Statement and Endorsement by the Board of Directors and the CEO ............................................................. 6-9
Consolidated Income Statement ......................................................................................................................
10
Consolidated Statement of Comprehensive Income ........................................................................................
11
Consolidated Balance Sheet ............................................................................................................................. 12
Consolidated Statement of Changes in Equity ................................................................................................. 13
Consolidated Statement of Cash Flows ............................................................................................................ 14
Notes to the Consolidated Financial Statements ............................................................................................. 15-43
Appendices (unaudited)
Quarterly Statements .......................................................................................................................................
44
Non-financial information ................................................................................................................................ 45-46
Corporate Governance Statement ................................................................................................................... 47-55
Company Information
Name Iceland Seafood In ternational hf.
TIN 611088-1329
BOD Liv Bergþórsdóttir, Chairman
Bergþór Baldvinsson, Board Member
Halldór Leifsson, Board Member
Ingunn Agnes Kro, Board Member
Jakob Valgeir Flosason, Board Member
Gunnlaugur Karl Hreinsson, Alternate Board Member
CEO Bjarni Ármannsson
Address Köllunarklettsvegur 2
Web www.icelandseafood.com
Lawyers Lex ehf
Borgartúni 26
105 Reykjavík
Iceland
www.lex.is
Auditors Deloitte ehf.
Smáratorgi 3
201 Kópavogur
Iceland
www.deloitte.is
Reporting currency Euro (EUR)
Iceland Seafood International h f.
1
Financial Statements 2021 - Audited
Independent Auditor's Report
of the Consolidated Financial Statements
To the Board of Directors and shareholders of Iceland Seafood International hf.
Opinion
Basis for opinion
Key audit matters
We have audited the Consolidated Financial Statements of Iceland Seafood International hf. for the year ended 31
December 2021 which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive
Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated
Statement of Cash Flows for the year then ended and the Notes to the Consolidated Financial Statements, including
a summary of significant accounting policies.
In our opinion, the accompanying Consolidated Financial Statements give a true and fair view of the consolidated
financial position of Iceland Seafood International hf. as at 31 December 2021 and its consolidated financial
performance and its consolidated cash flows for the year then ended in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the EU and additional requirements in the Icelandic Financial Statement
Act.
Our opinion in this report on the Consolidated Financial Statements is consistent with the content of the additional
report that has been submitted to the parent company´s audit committee in accordance with the EU Audit
Regulation 537/2014 Article 11.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of Iceland Seafood International hf. in accordance with the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code)
together with the ethical requirements that are relevant to our audit of the financial statements in Iceland, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. This
includes that, based on the best of our knowledge and belief, no prohibited services referred to in the EU Audit
Regulation 537/2014 Article 5.1 has been provided to the audited company or, where applicable, its parent company
or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the Consolidated Financial Statements of the current period. These matters were addressed in the context of our
audit of the Consolidated Financial Statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Iceland Seafood International hf. 2 Financial Statements 2021 - Audited
Independent Auditor's Report
of the Consolidated Financial Statements
Valuation of goodwill
How our audit addressed the key audit matter
Other information
The Board of Directors and the CEO are responsible for the other information. The other information comprises the
Statement and Endorsement by the Board of Directors and the CEO and the unaudited appendices to the
Consolidated Financial Statements.
Our opinion on the Consolidated Financial Statements does not cover the other information and we do not express
any form of assurance conclusion thereon, except the confirmation regarding Statement and Endorsement by the
Board of Directors and the CEO as stated below.
In connection with our audit of the Consolidated Financial Statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
In accordance with Paragraph 2 article 104 of the Icelandic Financial Statement Act no. 3/2006, we confirm to the
best of our knowledge that the accompanying Statement and Endorsement by the Board of Directors and CEO
includes all information required by the Icelandic Financial Statement Act that is not disclosed elsewhere in the
Consolidated Financial Statements.
Book value of goodwill at year-end amount
to EUR 61.8 million (2020: 51.7 million).
In order to address this key audit matter, we audited the
assumptions used in the impairment model for goodwill. As part
of our work, we engaged our internal specialists to assist with:
▪ Critically evaluating whether the model used by management to
calculate the value in use of the individual Cash Generating Units
complies with the requirements of IAS 36 Impairment of Assets.
▪ Validating the assumptions used to calculate the discount rates
and recalculating these rates.
▪ Considering the projected future cash flows, understanding
variances between the forecast and actual results for the year
ended 31 December 2021 and comparing the forecast growth
trends to historic trends.
▪ Evaluating the appropriateness of the sensitivity analysis applied
by management to the impairment testing model including
considering whether the scenarios reasonably represent possible
changes in key assumptions.
▪ Performing further sensitivity analysis based on recent trading
activity and our understanding of the future prospects to identify
whether these scenarios could give rise to further impairment;
and
Analysing the future projected cash flows used in the models to
determine whether they are reasonable and supportable given the
current macroeconomic climate and expected future performance
of the CGU’s).
We also reviewed the disclosures presented in note 10 to the
Consolidated Financial Statements to confirm compliance with the
Due to the relative sensitivity of certain
inputs to the impairment testing process, in
particular the future cash flows of the CGUs
noted above, the valuation of goodwill is
considered a key audit matter.
The management consider that each
geographical segment constitutes its own
cash generating unit (‘CGU’). The key
assumptions applied by the managements
in the impairment reviews are: segment
specific discount rates, future revenue
growth and expected future margins.
Determining whether the carrying value of
goodwill is recoverable requires
management to make significant estimates
regarding the future cash flows, discount
rates and long-term growth rates based on
management’s view of future business
prospects.
Iceland Seafood International hf. 3 Financial Statements 2021 - Audited
Independent Auditor's Report
of the Consolidated Financial Statements
Responsibilities of the Board of Directors and the CEO for the Consolidated Financial Statements
Auditor’s responsibilities for the audit of the Consolidated Financial Statements
The Board of Directors and the CEO are responsible for the preparation and fair presentation of the Consolidated
Financial Statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU
and additional requirements in the Icelandic Financial Statement Act, and for such internal control as the Board of
Directors and the CEO determines is necessary to enable the preparation of Consolidated Financial Statements that
are free from material misstatement, whether due to fraud or error.
In preparing the Consolidated Financial Statements, the Board of Directors and the CEO are responsible for assessing
Iceland Seafood International hf.’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Board of Directors and the CEO either
intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these Consolidated Financial Statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
▪ Identify and assess the risks of material misstatement of the Consolidated Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
▪ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Iceland
Seafood International hf.'s internal control.
▪ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
▪ Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated
Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
▪ Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the Consolidated Financial Statements represent the underlying transactions and events in
a manner that achieves fair presentation.
▪ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated and separate financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
Iceland Seafood International hf. 4 Financial Statements 2021 - Audited
Independent Auditor's Report
of the Consolidated Financial Statements
Kópavogur, 22 February 2022
Deloitte ehf.
Ingvi Björn Bergmann
State Authorised Public Accountant
We communicate with the Board of Directors and the Audit Committee regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the Board of Directors and the Audit Committee with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors and the Audit Committee, we determine those matters
that were of most significance in the audit of the Consolidated Financial Statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
In addition to our work as the auditors of Iceland Seafood International hf., Deloitte has provided the firm with
permitted additional services such as review of interim financial statements, other assurance engagements and
consultation on tax matters. Deloitte has in place internal procedures in order to ensure its independence before
acceptance of additional services. The audit committee also evaluates the independence of the company’s auditors
on yearly basis in order to ensure their independence and objectivity.
Deloitte was appointed auditor of Iceland Seafood International hf. by the Annual General Meeting of shareholders
on 18 March 2021. Deloitte have been elected since the Annual General Meeting 1999.
Iceland Seafood International hf. 5 Financial Statements 2021 - Audited
Statement and Endorsement
by the Board of Directors and the CEO
Statement
The Company
Operations for the year
It is the opinion of the Board of Directors and the CEO of Iceland Seafood International hf. (the Company), that these
Consolidated Financial Statements present the necessary information to evaluate the financial position of the
Company at year end, the operating results for the year and financial developments during the year 2021.
The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union and additional disclosure requirements in the Icelandic Act no. 3/2006 on
Financial Statements.
The Company is a holding company for a Group of subsidiaries that are leading suppliers of North Atlantic seafood
and are among the largest exporters of seafood from Iceland. The Group is headquartered in Iceland and has
subsidiaries in the United Kingdom, Ireland, Spain, Argentina, Iceland, France and Germany.
The Group operates across three divisions, Value Added Southern Europe, Value Added Northern Europe and Sales &
Distribution Division which has offices in Iceland, France and Germany. The Value Added Divisions have processing
factories and coldstores in their respective regions with Southern Europe also having a satellite facility in Argentina.
The Consolidated Balance Sheet at year-end 2021 shows total assets of EUR 279.4 million or EUR 37.9 million increase
over the prior year. The increase in total assets were driven by higher trade receivables as a result of increased sales
and acquisition of Ahumados Dominguez. Net debt at end of December of EUR 94.2 million was EUR 5.7 million
higher than at year end 2020, reflecting the increase in total assets and acquisition of Ahumados Dominguez.
Total sales in the year 2021 of EUR 449.0 million were 21% above prior year. In Value Added Southern Europe
division sales have been strong, especially after Q1, driven by good demand following easing of Covid19 restrictions.
This resulted in divisional sales of EUR 181.5 million in 2021 which was EUR 55.7 million up on previous year. Sales of
the S&D divisions were also impacted by lockdown restrictions in the beginning of the year but were good from
March, 12% ahead of last year. Sales of Value Added Northern Europe division during 2021 were 13% up on prior
year, driven by the addition of Carr & Sons Seafood Ltd (EUR 12.2m) and new retail listings in UK.
Total equity, including Non-controlling interests amounted to EUR 91.7 million compared to EUR 75.3m at end of
December 2020. Share issuance in relation to the acquisition of Ahumados Dominquez amounted to EUR 4.5 million.
The Equity ratio was 32.8% at year end compared to 31.2% at end of 2020. Full time employees in continuing
operations on average for the year were 771 (2020: 591), with 944 at year end (2020: 677).
Normalised PBT in the year EUR 12.5 million was EUR 7.5 million up on prior year and within the published outlook
range for normalised PBT of EUR 12.0 - 16.0 million. Strong sales in key markets, especially after Q1 and good results
from the Argentinian shrimp season helped the results. Ongoing Covid19 disruptions and challenges in production,
transportation and logistics negatively impacted results, especially in UK. After significant items of EUR 0.5 million and
income tax of EUR 3.1 million the resultant net profit for the period of EUR 8.8 million was EUR 8.0 million above
previous year.
Iceland Seafood International hf. 6 Financial Statements 2021 - Audited
Statement and Endorsement
by the Board of Directors and the CEO
COVID 19
Acquisition of Ahumados Dominguez
Operation in the USA
4) Utilise the Company's strong position to leverage opportunities that come up in the situation, both short term and
longer term opportunities. The acquisition of Ahumados Dominguez is an example of this.
During 2021 and 2020 some of the Group foreign subsidiaries have received local government assistance due to Covid
19. Entities in Iceland have not received such assistance.
On the 27 September 2021, the Company acquired 85% of the share capital of Ahumados Dominguez, a retail-
oriented company with a strong brand and consumer recognition in the smoked salmon sector in Spain. The
Ahumados Dominguez brand is known for its premium quality. The acquisition will strengthen Iceland Seafoods
position in the Spanish retail market, as well as creating opportunities to utilize the platform Ahumados Domingues
has for selling high quality cod products from Iceland. Ahumados Dominquez balance sheet is part of the group at
end of September 2021 but the company had operational impact on the Iceland Seafood Group from beginning of
October 2021.
An agreement was reached with Villa Seafood in Q3 2021. Sales and distribution of Icelandic landfrozen products
under the Iceland Gold brand, have been sold through Villa Seafood from 1 October 2021. The sales office of Iceland
Seafood in the USA was closed from that time. Iceland Seafood will continue to sell fresh and seafrozen products
from Iceland directly to its customers in USA.
Iceland Seafood acquired 85% stake in Ahumados Dominquez for €12.4 million. The acquisition was financed with a
combination of debt and issuance of new shares.
Inventories of the operation in USA have been sold and vast majority of receivables have been collected by the end of
the year. This change will simplify Iceland Seafood´s operation in the USA and reduce risk. At the same time it will
not have any significant impact on neither sales or profit generation of the Group.
The level of uncertainty remains high, both in relation to Covid 19 development and other key factors indirectly
impacted by the pandemic. Disruptions on supply chains will continue to impact transportation and logistic costs.
In addition to the negative impact on demand, the pandemic has indirectly caused interruptions to various supply
chains. Ongoing challenges in transportation and logistics, have both negatively impacted sales and increased costs in
the period.
The Covid19 pandemic and related restrictions have had a significant impact on operating results since March 2020.
Sales in Southern Europe which are predominantly to the HORECA sector, were significantly impacted by lockdown
restrictions in the beginning of 2021. Same applied to sales to the foodservice sector in other markets, whilst retail
sales were strong during the period. With easing of restrictions sales improved from March and onwards, especially
in Southern Europe. However changes in restrictions implemented and the underlying uncertainty is causing more
fluctuation in sales than in a normal year.
Iceland Seafood continues to manage the situation, among actions the Company has focused on during the pandemic
are:
3) Secure liquidity and ongoing funding of the operation through the capital market and banks in Iceland and Spain.
As part of this, the Group did secure funding for 3-5 years in Spain during 2020, completed a private placement of
EUR 23.1 million bond in Q2 2021 and has continued to issue bills, currently amounting to EUR 20.4 million. Both the
bond and the bills are listed on Nasdaq Iceland.
1) Implementing appropriate contingency plans within the Group businesses, focusing on health and safety of
employees and to secure the continuity of operations.
2) Tightening risk management controls, with focus on key assets on the balance sheet, inventories and receivables.
Around 73% of receivables on 31 December 2021 are credit insured.
Iceland Seafood International hf. 7 Financial Statements 2021 - Audited
Statement and Endorsement
by the Board of Directors and the CEO
Market capitalization
Shareholders
31.12.2021 31.12.2020
Sjávarsýn ehf ................................................................................................ 294 11% 290 11%
FISK Seafood ehf ...........................................................................................
279 10% 274 10%
Nesfiskur ehf ................................................................................................ 277 10% 274 10%
Jakob Valgeir ehf .......................................................................................... 274 10% 269 10%
Lífsverk lífeyrissjóður ....................................................................................
163 6% 128 5%
Stapi lífeyrissjóður ........................................................................................
159 6% 99 4%
Frjálsi lífeyrissjóðurinn ................................................................................. 131 5% 121 5%
Birta lífeyrissjóður ........................................................................................ 103 4% 108 4%
Akta Stokkur hs. ........................................................................................... 97 4% 26 1%
Arion Banki hf. ..............................................................................................
83 3% 179 7%
1.860 69% 1.768 67%
Other shareholders (2021: 678 and 2020: 585) ........................................... 854 31% 906 33%
2.714 100% 2.674 100%
Corporate Governance
The Company is listed on the Nasdaq main market in Iceland (ticker: ICESEA). The latest transaction in 2021 was at
ISK 14.80 per share, giving the Company a market capitalization of EUR 273.1 million (2020: EUR 216.6 million) or 26%
increase YOY.
The Board of Directors will propose to the Annual General Meeting that no dividend will be paid to shareholders in
2022. For an overview of changes in equity, see the Consolidated Statement of Changes in Equity. The Equity ratio
was 33% at year compared to defined targeted equity ratio of 35%.
Iceland Seafood International hf. is a limited liability company operating under Act No. 2/1995 respecting Public
Limited Companies. The framework for Corporate Governance practices within the Company is defined by the
provisions of law, the Nasdaq Iceland Rules, the principles set forth in the Corporate Governance Guidelines issued
by the Iceland Chamber of Commence, the Company's Articles of Association and rules of procedures for Board and
sub-committees. The Company is governed by shareholders meetings, the Board of Directors and the Chief Executive
Officer. The Board of Directors shall be composed of three to five members and up to two alternate members,
elected at the Annual General Meeting for a term of one year. Currently the board consist of five members and one
alternate member. Two of five board members are female, the company therefore complies with regulation on
gender compositon of the board. Further information is provided in the Corporate Governance Statement which is an
appendix to these Financial Statements.
The total number of shareholders at year end was 688 (2020: 595). The ten largest are (shares are in ISK millions):
Stock options are granted to management, based on stock option plan approved by Annual General Meeting in March
2021. Total granted and unexercised options at year end 2021 were 32.6 million shares (2020: 37.4 million shares).
At end of the year 17.2 million shares are exercisable and the remainder will vest in the next 3 years. Further
information on stock options is disclosed in note 18.4.
During the year the company has purchased owne shares in relation to settlement of option agreements with
employees. In total 4.815 thousands shares were purchased and sold during 2021 in relation to such settlements.
Iceland Seafood International hf. 8 Financial Statements 2021 - Audited
Statement and Endorsement
by the Board of Directors and the CEO
Non-financial information
Endorsement
Reykjavík, 22 February 2022.
Liv Bergþórsdóttir Bergþór Baldvinsson
Chairman of the Board Board Member
Halldór Leifsson Ingunn Agnes Kro
Board Member Board Member
Jakob Valgeir Flosason Bjarni Ármannsson
Board Member Chief Executive Officer
The Board of Directors and the CEO of Iceland Seafood International hf. hereby confirm the Consolidated Financial
Statements of the Company for the year 2021 with their signatures.
The Company is defined, under the Icelandic Act no. 3/2006 on Financial Statements, as a parent company of a large
consolidation. According to the Act, such companies are to disclose as an attachment to the Statement and
Endorsement by the Board of Directors and the CEO, relevant and useful information on their policies, main risks and
outcomes relating to environmental, social and employee matters, their human rights policy and how they counteract
corruption and bribery. Also a short description of their business model. This disclosure requirement is derived from
a European directive that became effective on 1 January 2017.
The Company has various policies in place regarding these above mentioned matters, rights and actions, which are
disclosed in the Non-Financial Information appendices to these Consolidated Financial Statements.
Iceland Seafood International hf. 9 Financial Statements 2021 - Audited
Consolidated Income Statement
for the year ended 31 December 2021
Note 2021 2020
Normalised Significant Normalised Significant
results items* IFRS results items* IFRS
Gross profit
Sales of seafood .................................... 2 449.049 449.049 369.840 369.840
Cost of sales .......................................... 13 (380.654 ) (380.654 ) (320.094 ) (320.094 )
Operating expenses
Operating expenses .............................. (49.915 ) (663 ) (50.578 ) (39.759 ) (2.421 ) (42.180 )
Depreciation and amortisation ............ 9 (3.735 ) (3.735 ) (3.019 ) (3.019 )
Operating profit ................................. 14.745 (663 ) 14.082 6.968 (2.421 ) 4.547
Net finance costs .................................. 5 (2.466 ) (2.466 ) (2.623 ) (2.623 )
Net exchange rate difference ............... 257 257 725 725
Profit before tax .................................
Income tax expense .............................. 6 (3.233 ) 133 (3.100 ) (1.353 ) 484 (869 )
Profit from continuing operations ......
Discontinued operations, net of tax ..... 7 (984 ) (984 )
Profit for the year ...............................
Attributable to
Owners of the Company ....................... 9.313 (530 ) 8.783 2.884 (2.921 ) (37 )
Non-controlling interests ..................... (10 ) (10 ) 833 833
EBITDA ............................................... 18.313 17.650 10.162 7.741
Earnings per share 8
Basic (cents per thousand shares) ........ 0,3538 0,3337 0,1430 0,0306
Diluted (cents per thousand shares) .... 0,3515 0,3315 0,1419 0,0304
* See note no 7 for further information on significant items.
Iceland Seafood International hf. 10
Amounts in EUR thousands
Financial Statements 2021 - Audited
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2021
Note 2021 2020
Normalised Significant Normalised Significant
results items* IFRS results items* IFRS
Profit for the year ................................ 9.303 (530 ) 8.773 3.717 (2.921 ) 796
Items that may be reclassified subsequently to profit or loss
Net fair value of cash flow hedges ......... 950 950 (556 ) (556 )
Translation difference ............................ 245 245 (378 ) (378 )
Total comprehensive income (loss)
for the year ........................................ 10.498 (530 ) 9.968 2.783 (2.921 ) (138 )
Attributable to
Owners of the Company ......................... 10.508 (530 ) 9.978 1.950 (2.921 ) (971 )
Non-controlling interests ....................... (10 ) (10 ) 833 833
* See note no 7 for further information on significant items.
Iceland Seafood International hf. 11
Amounts in EUR thousands
Financial Statements 2021 - Audited
Consolidated Balance Sheet
at 31 December 2021
Note 31.12.2021 31.12.2020
Assets
Non-current assets
Property, plant and equipment ............................................................................... 9 31.558 24.624
Leased assets ............................................................................................................ 21 1.922 1.726
Intangible assets ...................................................................................................... 10 62.569 52.654
Investments in other companies .............................................................................. 11 43 39
Deferred tax assets .................................................................................................. 6 4.842 2.835
Other long term assets ............................................................................................. 61 263
Total non-current assets 100.995 82.141
Current assets
Inventories ............................................................................................................... 13 77.311 80.886
Trade and other receivables .................................................................................... 14 65.702 48.789
Other assets ............................................................................................................. 15 7.579 6.382
Cash and bank balances ........................................................................................... 16 27.766 23.269
Total current assets 178.358 159.326
Total assets 279.353 241.467
Equity and liabilities
Capital and reserves
Issued capital and share premium ........................................................................... 17 80.291 76.114
Translation reserve .................................................................................................. 18 (798 ) (1.043 )
Other reserves .......................................................................................................... 18 521 (465 )
Retained earnings and unrealised profit from subsidiaries ..................................... 9.423 607
Equity attributable to owners of the Company 89.437 75.213
Non-controlling interests ......................................................................................... 2.297 104
Total equity 91.734 75.317
Non-current liabilities
Borrowings ............................................................................................................... 19 40.303 22.811
Lease liabilities ......................................................................................................... 21 1.477 1.371
Retirement benefit and other obligations ............................................................... 1.470 1.685
Deferred tax liabilities .............................................................................................. 6 862 795
Total non-current liabilities 44.112 26.662
Current liabilities
Borrowings ............................................................................................................... 19 81.635 88.964
Lease liabilities ......................................................................................................... 21 661 588
Trade and other payables ........................................................................................ 52.239 39.333
Other liabilities ......................................................................................................... 20 8.972 10.603
Total current liabilities 143.507 139.488
Total liabilities 187.619 166.150
Total equity and liabilities 279.353 241.467
Iceland Seafood International hf. 12
Amounts in EUR thousands
Financial Statements 2021 - Audited
Consolidated Statement of Changes in Equity
for the year ended 31 December 2021
Restricted equity
Attributable Non -
Share Share Translation Hedging Statutory Equity Unrealised profit Retained to owners of controlling Total
capital premium reserve reserve reserve reserve of subsidiaries earnings the Company interests equity
Balances at 1 January 2020 24.094 44.666 (665 ) (441 ) 430 49 7.429 874 76.436 3.805 80.241
Profit for the year ................................................ 2.151 (2.188 ) (37 ) 833 796
Net fair value loss on cash flow hedges ............... (556 ) (556 ) (556 )
Translation of shares held in foreign currencies .. (378 ) (378 ) (378 )
Total comprehensive income ............................... (378 ) (556 ) 2.151 (2.188 ) (971 ) 833 (138 )
Issue of share capital ............................................ 774 6.707 7.481 7.481
Acquisition of non controlling interests ............... (7.838 ) (7.838 ) (4.534 ) (12.372 )
Other adjustments ............................................... (127 ) 53 179 105 105
Balances at 31 December 2020 24.868 51.246 (1.043 ) (997 ) 430 102 9.580 (8.973 ) 75.213 104 75.317
Profit for the year ................................................ 14.423 (5.640 ) 8.783 (10 ) 8.773
Net fair value gain on cash flow hedges ............... 950 950 950
Translation of shares held in foreign currencies .. 245 245 245
Total comprehensive income ............................... 245 950 14.423 (5.640 ) 9.978 (10 ) 9.968
Issue of share capital ............................................ 266 4.266 4.532 4.532
Dividend declared from subsidiaries to parent .... (11.500 ) 11.500 0 0
Non-controlling interest arising from
acquisitions of a subsidiary ................................ 2.196 2.196
Other adjustments ............................................... (355 ) 36 33 (286 ) 7 (279 )
Balances at 31 December 2021 25.134 55.157 (798 ) (47 ) 430 138 12.503 (3.080 ) 89.437 2.297 91.734
Iceland Seafood International hf. 13
Amounts in EUR thousands
Financial Statements 2021 - Audited
Consolidated Statement of Cash Flows
for the year ended 31 December 2021
Note 2021 2020
Operating activities
Operating profit ................................................................................................ 14.082 4.547
Depreciation and amortisation ......................................................................... 9 3.735 3.019
Loss (gain) on disposal of property, plant and equipment ............................... 67 (44 )
Change in obligations and other calculated liabilities ....................................... 1.332 159
Working capital generated from operations 19.216 7.681
Decrease (increase) in inventories .................................................................... 5.127 (15.385 )
(Increase) decrease in receivables and other assets ......................................... (15.072 ) 14.242
Increase (decrease) in payables and other liabilities ........................................ 6.129 (3.357 )
Cash generated from operations before interests and taxes 15.400 3.181
Interest received ............................................................................................... 273 238
Interest paid ...................................................................................................... (2.739 ) (2.861 )
Income taxes paid ............................................................................................. (3.945 ) (548 )
Net cash generated by operating activities 8.989 10
Investing activities
Payments for property, plant and equipment .................................................. 9 (5.447 ) (9.655 )
Proceeds from disposal of property, plant and equipment .............................. 244 1.194
Payments for intangible assets ......................................................................... 10 (26 ) (183 )
Proceeds from disposal of intangible assets ..................................................... 66
Net cash outflow on acquisition of subsidiaries ................................................ (11.831 ) (7.812 )
Net proceeds from disposal of subsidiary ......................................................... 7 227
Net cash used in investing activities (17.060 ) (16.163 )
Net cash before financing activities (8.071 ) (16.153 )
Financing activities
Net repayment of revolving credit facility ......................................................... 19 (6.740 ) (2.795 )
Net proceeds from bills ..................................................................................... 19 27 18.467
Net proceeds from bonds ................................................................................. 19 23.098
Net proceeds from borrowings on new term loan ............................................ 19 5.955 22.589
Net repayment of other borrowings ................................................................. (13.221 ) (4.780 )
Acquisition of minority shares .......................................................................... (4.424 )
Purchase of treasury shares .............................................................................. 17 (355 ) (127 )
Proceeds from issue of share capital, net of issue costs ................................... 17 4.532
Net cash generated by financing activities 13.296 28.930
Net increase in cash and bank balances ............................................................ 5.225 12.777
Cash and bank balances at the beginning of the year ....................................... 23.269 9.610
Effect of exchange rate changes on cash held in foreign currencies ................ (728 ) 882
Cash and bank balances at the end of the year 16 27.766 23.269
Non-cash investing and financing activities
Acquisition of subsidiaries ................................................................................. (7.481 )
Proceeds from issue of share capital ................................................................ 7.481
Iceland Seafood International hf. 14
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
1. General information
2. Segment information
2.1 Products and services from which reportable segments derive their revenues
Processing and sale of seafood in Southern Europe.
Processing and sale of seafood in UK and Ireland.
Distribution of seafood to a global network of customers.
Head office and discontinued operations.
2.2 Segment revenue, results, assets and liabilities
For the year 2021 Value added Value added Sales & Other and
S-Europe N-Europe Distribution Eliminations Consolidated
Revenue:
Sales of seafood ...................... 213.755 125.254 172.699 511.708
Eliminations ............................ (32.299) (470) (10.392) (19.498) (62.659)
181.456 124.784 162.307 (19.498) 449.049
Operating results:
Operating profit (loss) ............ 13.586 (1.147) 2.918 (612) 14.745
Net finance costs .................... 332 (1.989) (47) (505) (2.209)
Normalised PBT ................... 13.918 (3.136) 2.871 (1.117) 12.536
Income tax .............................. (3.858) 829 (594) 390 (3.233)
Normalised profit (loss) ........ 10.060 (2.307) 2.277 (727) 9.303
Significant items and
discontinued operations ....... (180) (63) (36) (251) (530)
Profit (loss) .......................... 9.880 (2.370) 2.241 (978) 8.773
Assets ......................................
124.357 72.657 24.998 57.341 279.353
Liabilities ................................. 83.042 51.978 18.110 34.489 187.619
Iceland Seafood International hf. (the Company) is a public limited company incorporated in Iceland. It is listed on
the Nasdaq main market in Iceland (ticker: ICESEA).
Information is reported to the Board of Directors and key management on the operating segment level. The
reportable segments in 2021 were:
The address of its registered office and principal place of business are disclosed in the Contents to the Consolidated
Financial Statements. The principal activities of the Company and its subsidiaries (the Group) are described in the
Statement and Endorsement by the Board of Directors and the CEO.
Value added Northern Europe .
Sales & Distribution ................
Value added Southern Europe .
Other .......................................
Iceland Seafood International hf. 15
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
For the year 2020 Value added Value added Sales & Other and
S-Europe N-Europe Distribution Eliminations Consolidated
Revenue:
Sales of seafood ...................... 142.151 112.558 156.978 411.687
Eliminations ............................ (16.399) (1.919) (11.593) (11.936) (41.847)
125.752 110.640 145.385 (11.936) 369.840
Operating results:
Operating profit (loss) ............ 2.962 2.955 1.665 (614) 6.968
Net finance costs .................... 103 (1.294) (110) (597) (1.898)
Normalised PBT ................... 3.065 1.661 1.555 (1.211) 5.070
Income tax .............................. (809) (421) (291) 168 (1.353)
Normalised profit (loss) ........ 2.256 1.240 1.264 (1.043) 3.717
Significant items and
discontinued operations ....... (1.059) (1.527) (148) (187) (2.921)
Profit (loss) .......................... 1.197 (287) 1.116 (1.230) 796
Assets ......................................
97.771 75.288 22.094 46.314 241.467
Liabilities ................................. 71.449 60.252 16.056 18.393 166.150
3. Salaries
2021 2020
Salaries ....................................................................................................................... 27.332 22.649
Pension related expenses .......................................................................................... 1.201 796
Other salary related expenses ................................................................................... 1.352 1.006
29.885 24.451
2021 2020
Cost of sales ............................................................................................................... 17.632 14.670
Operating expenses ................................................................................................... 12.253 9.781
29.885 24.451
Full time employees on average for the year from continuing operations ............. 771 591
Full time employees at end of the year from continuing operations ....................... 944 677
4. Fee to auditors
2021 2020
Audit of the Consolidated Financial Statements ....................................................... 334 335
Other services ............................................................................................................ 72 52
406 387
Classified by operational category:
Salaries and related expenses:
Iceland Seafood International hf. 16
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
5. Net finance costs
2021 2020
Investment income:
Interest income on bank accounts ............................................................................ 194 101
Interest income on trade receivables ........................................................................ 79 137
Total investment income ........................................................................................... 273 238
Finance costs:
Interest expenses on borrowings .............................................................................. (2.569) (2.671)
Interest expenses on obligations under leases ......................................................... (112) (118)
Other interest expenses ............................................................................................. (58) (72)
Total finance costs ..................................................................................................... (2.739) (2.861)
Net finance costs ....................................................................................................... (2.466) (2.623)
6. Income tax
6.1 Income tax recognised in profit or loss 2021 2020
Current tax expense ................................................................................................... (4.790) (871)
Deferred tax expense ................................................................................................. 1.690 2
(3.100) (869)
2021 2020
Profit before tax after significant items .................................................................... 11.873 2.649
Income tax expense calculated at 20% (the Company's rate in Iceland) ................. (2.375) (530)
Effect of different tax rates of subsidiaries operating in other jurisdictions ........... (1.165) 103
Effect of items that are not deductible/taxable in determining taxable profit ....... (138) 111
Effect of unused tax losses and tax offsets not recognised as def. tax assets ......... 515 (382)
Effect of exchange rate difference on deferred tax .................................................. 170 (213)
Change in tax rate ...................................................................................................... (15) 45
Others ......................................................................................................................... (92) (3)
Income tax expense recognised in profit or loss .......................................................
(3.100) (869)
Effective tax rate ........................................................................................................ 26% 33%
6.2 Current tax balances 31.12.2021 31.12.2020
Income tax payable ....................................................................................................
2.994 743
The income tax expense for the year can be reconciled to the accounting profit as follows:
Iceland Seafood International hf. 17
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
6.3 Deferred tax balances 31.12.2021 31.12.2020
Deferred tax assets .................................................................................................... 4.842 2.835
Deferred tax liabilities ................................................................................................ (862) (795)
3.980 2.040
Deferred tax assets / (liabilities) have changed as follows:
Deferred tax Deferred tax
assets liabilities Total
At 1 January 2020 ........................................................................... 2.978 (940) 2.038
Calculated tax for the year ............................................................. (139) (730) (869)
Acquired on acquisition of subsidiary ........................................... 159 (10) 149
Income tax payable for the period ................................................ 871 871
Other items .................................................................................... (163) 14 (149)
At 31 December 2020 .................................................................... 2.835 (795) 2.040
Calculated tax for the year ............................................................. 1.862 (4.962) (3.100)
Acquired on acquisition of subsidiary ........................................... 250 250
Income tax payable for the period ................................................ (105) 4.895 4.790
At 31 December 2021 .................................................................... 4.842 (862) 3.980
Deferred tax assets / (liabilities) are in relation to:
31.12.2021 31.12.2020
Property, plant and equipment ................................................................................. (574) (635)
Intangible assets ........................................................................................................ 88 140
Inventories ................................................................................................................. (6) 1
Trade and other receivables ...................................................................................... 283 (35)
Deferred revenue ....................................................................................................... (201) 27
Deferred exchange rate difference ........................................................................... 42 (204)
Deferred tax loss ........................................................................................................ 4.082 2.580
Other items ................................................................................................................ 266 166
3.980 2.040
6.4. Unused tax losses
Most of the unused tax losses will expire in the years 2025-2030, although some subsidiaries have unused tax losses
that do not expire.
Iceland Seafood International hf. 18
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
7. Significant items
- Other restructuring cost during the period 0.3 million.
Exceptional costs, net of income tax: 2021 2020
Exceptional income .................................................................................................... 110
Exceptional costs ....................................................................................................... (773) (2.421)
Income tax ................................................................................................................. 133 484
Exceptional costs, net of income tax ......................................................................... (530) (1.937)
Discontinued operations, net of income tax:
Net loss from discontinued operations ..................................................................... (1.278)
Income tax ................................................................................................................. 294
Ecomsa S.A. discontinued operations, net of income tax ........................................ 0 (984)
Significant items, net of income tax ..................................................................
(530) (2.921)
8. Earnings per share
2021 2020
Profit for the year ...................................................................................................... 8.773 796
Weighted average number of ordinary shares (in ISK thousands) for basic EPS .....
2.629.172 2.600.004
Shares to be issued in respect of employee options ................................................
17.174 19.198
Weighted average number of ordinary shares (in ISK thousands) for diluted EPS ..
2.646.346 2.619.202
Basic earnings per share (EUR cents per thousand shares):
Basic earnings per share ............................................................................................ 0,3337 0,0306
Diluted earnings per share (EUR cents per thousand shares):
Diluted earnings per share ......................................................................................... 0,3315 0,0304
- Costs related to acquisitions in the period 0.4 million.
- Restructuring cost in UK related to the merger of Iceland Seafood Barraclough and Havelok 1.7 million.
In 2021 the Group incurred costs associated with the following:
- Costs related to acquisitions and restructuring costs in the period 0.8 million.
In 2020 the Group incurred costs associated with the following:
- Oceanpath Ltd. sold its 50% share in joint venture Credible Properties Ltd. The company book value was zero and
the sales gain in EUR 0.1 million.
In 2020 Ecomsa S.A., a Spanish subsidiary of Iceland Seafood Ibérica was sold and therefore restated as
discontinued operations. For further information see note 8, in the Company Financial Statements for the year
ended 31 December 2020.
Iceland Seafood International hf. 19
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
9. Property, plant and equipment
Property Machinery
For the year 2021 and land and equipment Total
Cost
At 1 January .................................................................................... 16.235 13.786 30.021
Acquired on acquisition of subsidiary ........................................... 2.088 1.652 3.740
Additions ........................................................................................ 1.794 3.653 5.447
Eliminated on disposal ................................................................... (190) (1.473) (1.663)
Fully depreciated assets ................................................................. (1.701) (1.701)
Exchange rate differences ............................................................. 598 418 1.016
At 31 December ............................................................................. 20.525 16.335 36.860
Depreciation
At 1 January .................................................................................... 1.751 3.646 5.397
Acquired on acquisition of subsidiary ........................................... 37 37
Charge for the period ..................................................................... 674 2.175 2.849
Eliminated on disposal ................................................................... (103) (1.359) (1.462)
Fully depreciated ............................................................................ (1.701) (1.701)
Exchange rate differences ............................................................. 77 105 182
At 31 December ............................................................................. 2.399 2.903 5.302
At 31 December 2021 .................................................................... 18.126 13.432 31.558
Property Machinery
For the year 2020 and land and equipment Total
Cost
At 1 January .................................................................................... 10.531 12.109 22.640
Acquired on acquisition of subsidiary ........................................... 943 3.504 4.447
Additions ........................................................................................ 5.656 3.999 9.655
Eliminated on disposal ................................................................... (707) (5.279) (5.986)
Fully depreciated assets ................................................................. (15) (15)
Exchange rate differences ............................................................. (188) (532) (720)
At 31 December ............................................................................. 16.235 13.786 30.021
Depreciation
At 1 January .................................................................................... 1.302 3.760 5.062
Acquired on acquisition of subsidiary ........................................... 377 2.181 2.558
Charge for the period ..................................................................... 341 1.788 2.129
Eliminated on disposal ................................................................... (261) (3.864) (4.125)
Fully depreciated assets ................................................................. (15) (15)
Exchange rate differences ............................................................. (8) (204) (212)
At 31 December ............................................................................. 1.751 3.646 5.397
At 31 December 2020 .................................................................... 14.484 10.140 24.624
Iceland Seafood International hf. 20
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
9.1 Useful lives
Property and land ............................................... 20-40 years
Machinery and equipment ................................. 3-20 years
9.2 Property, plant and equipment pledged as security
9.3 Depreciation and amortisation expense 2021 2020
Depreciation of property, plant and equipment ....................................................... 2.849 2.129
Amortisation of intangible assets, note 10 ............................................................... 325 323
Depreciation of leased assets, note 21 ..................................................................... 561 567
3.735 3.019
9.4 Property, plant and equipment insurance value 31.12.2021 31.12.2020
Insurance value .......................................................................................................... 49.623 31.920
10. Intangible assets
Other intangible
For the year 2021 Goodwill assets Total
At 1 January ................................................................................... 51.690 964 52.654
Acquired on acquisition of subsidiary ........................................... 10.044 83 10.127
Additions ........................................................................................ 26 26
Charge for the period ..................................................................... (325) (325)
Exchange rate differences ............................................................. 86 1 87
At 31 December ............................................................................. 61.820 749 62.569
Other intangible
For the year 2020 Goodwill assets Total
At 1 January ................................................................................... 43.526 1.172 44.698
Acquired on acquisition of subsidiary ........................................... 8.255 8.255
Additions ........................................................................................ 183 183
Charge for the period ..................................................................... (323) (323)
Eliminated on disposal ................................................................... (66) (66)
Exchange rate differences ............................................................. (91) (2) (93)
At 31 December ............................................................................. 51.690 964 52.654
During the year, the Company assessed the recoverable amount of goodwill and determined that none of the
Company's cash-generating units have suffered an impairment loss.
The following useful lives of property, plant and equipment are used in the calculation of amortisation.
The Group has provided a pledge on its property in UK to secure banking facility granted to the UK operation of the
Group. This asset has a carrying amount at year end of EUR 5.7 million.
Iceland Seafood International hf. 21
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
10.1 Allocation of goodwill to cash-generating units
31.12.2021 31.12.2020
WACC % Book value WACC % Book value
Iceland ................................................................ 6,3% 4.072 5,8% 4.072
Spain ................................................................... 5,4% 39.915 5,4% 29.871
France ................................................................. 5,8% 1.127 5,4% 1.127
Ireland ................................................................. 6,7% 15.012 6,7% 15.012
UK ....................................................................... 7,6% 1.694 7,2% 1.608
61.820 51.690
The recoverable amount of these cash-generating units is determined based on a value in use calculation, which
uses cash flow projections based on financial forecasts prepared by management covering a five-year period and a
discount rate of 5.4-7.6% p.a. (2020: 5.4-7.2% p.a.).
Cash flow projections during the forecast period are based on the same expected gross margins and raw materials
price inflation throughout the forecast period. The cash flows beyond that five-year period have been extrapolated
using a steady 1.5% p.a. (2020: 1.5%) growth rate which is the projected long-term average growth rate for the
international seafood market. Management believes that any reasonably possible change in the key assumptions
on which recoverable amount is based would not cause carrying amounts of any of the cash generating units to
exceed their recoverable amounts. An increase in weighted average cost of capital of more than 200 bps would
cause impairment of goodwill.
Goodwill has been allocated for impairment testing purposes to the following cash-generating units.
Iceland Seafood International hf. 22
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
11. Subsidiaries and other investments
Place of Ownership Ownership
Name of company incorporation 31.12.2021 31.12.2020
Principal activity
Subsidiaries:
Iceland Seafood ehf. Iceland 100% 100% Sale of seafood
Solo Export ehf. Iceland 100% 100% Not active
Iceland Seafood Ibérica S.A.U. Spain 100% 100% Sale of seafood
- Achernar S.A. Argentina 100% 100% Sale of seafood
- Elba S.L. Spain 100% 100% Sale of seafood
Ahumados Dominguez
A)
Spain 85% Sale of seafood
Iceland Seafood Barraclough Ltd. UK 100% 100% Sale of seafood
- F. Barraclough Ltd. UK 100% 100% Not active
- Iceland Seafood UK Ltd. UK 100% 100% Sale of seafood
Oceanpath Ltd. Ireland 100% 100% Sale of seafood
- Dunns Seafare Ltd. Ireland 100% 100% Sale of seafood
- Mondi Properties Ireland Ltd. Ireland 100% 100% Real estate
- Carr & Sons Seafood Ltd. Ireland 100% 100% Sale of seafood
- H J Nolan Ltd. Ireland 100% 100% Sale of seafood
Iceland Seafood France S.A.S. France 100% 100% Sale of seafood
ISG Iceland Seafood GmbH Germany 100% 100% Sale of seafood
ISI Seafood Inc. USA 100% 100% Sale of seafood
Iceland Seafood Hellas A.E.E. Greece 66% 66% Liquidation
Investments in other companies:
Febin Marine Foods Private Ltd India 5% 5% Seafood supply
Former subsidiaries:
Elba Seafood ehf.
B)
Iceland 100% Holding
Dunns (Fish & Poultry) Ltd.
C)
Ireland 100% Holding
Investments in joint ventures:
Credible Properties Ltd.
D)
Ireland 50% Properties
11.1 Subsidiaries pledged as security
The Group's subsidiaries and other investments are as follows.
B)
Elba Seafood ehf. and Iceland Seafood International hf. merged at beginning of year 2021.
C)
Dunns (Fish & Poultry) Ltd. was liquidated in 2021.
A)
The acquisition of Ahumados Dominguez was completed in September 2021 (see note 12).
Equity of subsidiaries, except from subsidiaries in Spain, have been pledged for the Group's borrowings.
D)
Oceanpath Ltd. sold its 50% share in Credible Properties Ltd. in June 2021 (see note 7).
Iceland Seafood International hf. 23
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
12.
Acquisition of subsidiary
27.9.2021
Property, plant and equipment .............................................................................................................. 3.658
Deferred tax assets ................................................................................................................................. 250
Other longterm assets ............................................................................................................................ 41
Inventories .............................................................................................................................................. 1.552
Trade and other receivables ................................................................................................................... 2.909
Intangible assets ..................................................................................................................................... 83
Cash and bank balances .......................................................................................................................... 613
Assets acquired 9.106
Long-term borrowings ............................................................................................................................ 491
Contingent liabilities ............................................................................................................................... 161
Short-term borrowings ........................................................................................................................... 246
Trade and other payables ....................................................................................................................... 3.612
Liabilities assumed 4.510
Total net identified assets ...................................................................................................................... 4.596
Non-controlling interest´s measured at fair value ................................................................................. (2.196)
Attributable to the Company ................................................................................................................. 2.400
Consideration paid in cash ...................................................................................................................... 12.444
Provisional goodwill on acquisition ........................................................................................................
10.044
Net cash outflow on acquisition of Ahumados Dominquez:
2021
Consideration paid in cash ...................................................................................................................... 12.444
Less: cash and cash equivalent balances acquired ................................................................................ (613)
11.831
Ahumados Dominquez impact on the Group´s sales in 2021 were EUR 8.5 million and it generated profit of EUR 0.3
million.
On the 27 September 2021, the Company acquired 85% of the share capital of Ahumados Dominguez, a retail-
oriented company with a strong brand and consumer recognition in the smoked salmon sector in Spain. The
Ahumados Dominguez brand is known for its premium quality. The acquisition will strengthen Iceland Seafoods
position in the Spanish retail market, as well as creating opportunities to utilize the platform Ahumados Domingues
has for selling high quality cod products from Iceland. Iceland Seafood acquired 85% stake in Ahumados
Dominquez for €12.4 million.
In accordance with IFRS 3 Business Combinations, the purchase price of Ahumados Dominquez was allocated to
identifiable assets and liabilities acquired. Provisional goodwill amounted to EUR 10.0 million.
The following table summarizes the consideration paid for Ahumados Dominquez and the recognized provisional
amounts of assets acquired and liabilities assumed at the acquisition date, being the 27 September 2021.
Under IFRS 3, up to one year from the acquisition date, the initial accounting for business combinations needs to be
adjusted to reflect new information that is obtained about facts and circumstances that existed as of the
acquisition date and, if known, would have affected the measurement of the amounts recognized as of that date.
As a result of such adjustments the values of assets and liabilities recognized may change in the one-year period
from the acquisition date.
Iceland Seafood International hf. 24
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
13. Inventories
31.12.2021 31.12.2020
Raw materials ............................................................................................................ 13.936 12.492
Finished goods ........................................................................................................... 60.339 66.398
Other inventories ....................................................................................................... 3.516 1.996
77.791 80.886
13.1 Recognised as an expense
2021 2020
Cost of sales ............................................................................................................... 380.654 320.094
13.2 Movement in write-downs to net realisable value 31.12.2021 31.12.2020
At 1 January ................................................................................................................ (720) (824)
Write-downs of inventory to a net realisable value ................................................. (249) (48)
Reversal of such write-downs ................................................................................... 42 149
Exchange rate differences ......................................................................................... (4) 3
At 31 December ......................................................................................................... (931) (720)
13.3 Inventories pledged as security
14. Trade and other receivables
31.12.2021 31.12.2020
Trade and other receivables ...................................................................................... 66.949 49.750
Allowance for doubtful accounts .............................................................................. (1.247) (961)
65.702 48.789
14.1 Trade receivables
Inventories, except from Inventories in Spain, have been pledged for the Group's borrowings.
The expected credit losses (ECL) on trade receivables are estimated using a provision matrix by reference to past
default experience of the debtor and an analysis of the debtor´s current financial position, adjusted for factors that
are specific to the debtors such as general economic conditions in the markets the Group operates. This analysis
also takes into account if receivables are credit insured or not at end of the year, recoverability of credit insured
receivables is in the range from 90-95%. Around 73% of Group's receivables were credit insured.
Allowance has been made for doubtful accounts and sales returns. This allowance has been determined by
management in reference to past default experience. Management considers that the carrying amount of
receivables approximates their fair value.
The cost of inventories recognised as an expense is:
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or
has entered into bankruptcy proceedings, or when the trade receivables are over two years past due, whichever
occurs earlier.
Iceland Seafood International hf. 25
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
14.2 Trade receivables expected credit loss
The following table details the risk profile of trade receivables based on the Group´s provision matrix.
Trade receivables - days past due
31.12.2021 Not past due <30 31 - 60 61 - 90 >90
Uninsured receivables
1,2% 2,4% 6,1% 12,0% 100,0%
8.913 1.363 320 206 1.001
107 33 20 25 1.001
Insured receivables
0,9% 2,0% 5,0% 13,5% 100,0%
42.164 11.465 727 381 271
28 15 2 3 14
1.247
Trade receivables - days past due
31.12.2020 Not past due <30 31 - 60 61 - 90 >90
Uninsured receivables
1,2% 2,2% 5,1% 11,5% 100,0%
6.851 501 108 91 762
82 11 6 10 762
Insured receivables
0,9% 2,0% 5,0% 13,5% 100,0%
32.401 7.596 617 137 417
29 15 3 2 42
961
Expected credit loss (ECL)
Expected credit loss (ECL)
Total expected credit loss ......................................................................................................................
Expected credit loss rate
Estimated total gross
carrying amount at default
Estimated total gross
carrying amount at default
Expected credit loss rate
Expected credit loss (ECL)
Expected credit loss rate
Estimated total gross
carrying amount at default
Total expected credit loss ......................................................................................................................
Expected credit loss rate
Expected credit loss (ECL)
Estimated total gross
carrying amount at default
Iceland Seafood International hf. 26
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
14.3 Movement in the allowance for doubtful debts 2021 2020
At 1 January ................................................................................................................ (961) (573)
Acquired on acquisition of a subsidiary .................................................................... (230) (222)
Change in impairment estimate ................................................................................ (211) (229)
Amounts recovered ................................................................................................... 160 60
Exchange rate difference ........................................................................................... (5) 3
At 31 December ......................................................................................................... (1.247) (961)
14.4 Receivables pledged as security
15. Other assets
31.12.2021 31.12.2020
Prepaid expenses ....................................................................................................... 3.947 2.927
Value added and capital gain taxes ........................................................................... 2.864 2.960
Fair value of cash flow hedges ................................................................................... 768 495
7.579 6.382
16. Cash and bank balances
17. Issued capital and share premium
Authorized Issued Outstanding
17.1 Shares shares shares shares Book value
2.561.344 2.561.344 2.561.344 24.094
113.135 113.135 113.135 774
2.674.479 2.674.479 2.674.479 24.868
40.000 40.000 40.000 266
2.714.479 2.714.479 2.714.479 25.134
Share Share
17.2 Issued capital and share premium capital premium Total
At 1 January 2020 ........................................................................... 24.094 44.666 68.760
Treasury shares purchased ............................................................ (127) (127)
New shares issued .......................................................................... 774 6.707 7.481
At 31 December 2020 .................................................................... 24.868 51.246 76.114
Treasury shares purchased ............................................................ (355) (355)
New shares issued .......................................................................... 266 4.266 4.532
At 31 December 2021 .................................................................... 25.134 55.157 80.291
New shares issued ..............................................
Share issuance in relation to closing of the acquisition of Ahumados Dominquez at end of September amounted to
ISK 40 million. The issuance of new shares was at a price of ISK 17.10 or the amount of ISK 684 million.
At 1 January 2020 ...............................................
At 31 December 2020 ........................................
New shares issued ..............................................
Cash and bank balances consist of cash and bank accounts.
Trade receivables, except from receivables in Spain, have been pledged for the Group's borrowings.
Fully paid shares, which have a par value of ISK 1, carry one vote per share and carry right to dividends.
At 31 December 2021 ........................................
Iceland Seafood International hf. 27
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
18. Reserves
31.12.2021 31.12.2020
Translation reserve .................................................................................................... (798) (1.043)
Hedging reserve ......................................................................................................... (47) (997)
Statutory reserve ....................................................................................................... 430 430
Equity reserve ............................................................................................................ 138 102
Unrealised profit of subsidiaries ................................................................................ 12.503 9.580
12.226 8.072
18.1 Translation reserve
18.2 Hedging reserve
18.3 Statutory reserve
Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from
their functional currencies to the Group’s presentation currency (i.e. Euro) are recognised directly in other
comprehensive income and accumulated in the foreign currency translation reserve. Exchange differences
previously accumulated in the foreign currency translation reserve (in respect of translating both the net assets of
foreign operations and hedges of foreign operations) are reclassified to profit or loss on the disposal of the foreign
operation.
In accordance with the Icelandic Act no 2/1995 on Public Limited Companies, the Company is to retain 10% of its
annual profit in a statutory reserve until it equals 10% of the outstanding shares. After that, the Company is to
retain 5% until the reserve equals 25% of the outstanding shares.
The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in
fair value of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes
in fair value of the hedging instruments that are recognised and accumulated under the heading of cash flow
hedging reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or
included as a basis adjustment to the non-financial hedged item, consistent with the Group’s accounting policy.
Iceland Seafood International hf. 28
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
18.4 Equity reserve
Average exercise Stock options
price per share (thousands)
At 1 January 2021 ...................................................................................................... 8,27 37.375
Granted ...................................................................................................................... - 0
Exercised .................................................................................................................... 7,09 (4.815)
Cancelled .................................................................................................................... - 0
At 31.12.2021 .............................................................................................................
8,44 32.560
Exercisable stock options at 31.12.2021 ................................................................... 17.174
At 1 January 2020 ...................................................................................................... 7,51 32.846
Granted ...................................................................................................................... 10,23 8.920
Exercised .................................................................................................................... 6,28 (3.559)
Cancelled .................................................................................................................... 7,69 (832)
At 31.12.2020 .............................................................................................................
8,27 37.375
Exercisable stock options at 31.12.2020 ................................................................... 19.198
18.5 Unrealised profit of subsidiaries
The equity-settled employee benefits reserve relates to share options granted by the Company to its employees
under its employee share option plan.
If a share of profit of subsidiaries is in excess of dividends received from those companies or dividend that has been
decided to distribute, the difference is to be transferred from retained earnings to a restricted reserve among
equity. If a company's shareholding in its subsidiary is sold or written off, the aforementioned reserve is to be
dissolved via transfer to retained earnings or accumulated deficit, as applicable.
At 31 December 2021, executives and senior employees held options to buy 32.560.417 shares in the Company, no
new share options were granted during the year. Weighted average livetime of outstanding options at year end was
7 years, the exercise price is in the range from ISK 5.4 to 10.23 per share. Options granted prior to 2020, will vest
over four years from issuance, with the first 12/48 of the option vesting at the first anniversary of grant date and
the remaining 36/48 vesting monthly after that. Options granted during 2020, will vest over four years from
issuance, with the first 36/48 vesting at the third anniversary of grant date and being exercisable at that day. The
remaining 12/48 will vest monthly after that but are first exercisable at the time the Optionee ceases to be
employed by the Company. The exercise price of options granted is the same as market price at Nasdaq stock
exchange at the time options are granted. All options are subject to the condition that the Optionee remains an
employee of the Company. The options carry neither rights to dividends nor voting rights and are valued using the
Black Scholes option pricing model. During 2021 4.815 thousands shares options were exercised at the average
exercise price of ISK 7.09 per share. During the year 35 thousands was expensed in the income statement due to
stock option agreements (2020: 53 thousands).
Iceland Seafood International hf. 29
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
19. Borrowings
31.12.2021 31.12.2020
Current Non-current Current Non-current
Revolving credit facilities ................................... 73.669 79.913
Other bank loans ................................................ 7.966 40.303 9.051 22.811
81.635 40.303 88.964 22.811
19.1 Revolving credit facilities
19.2 Aggregated maturities
31.12.2021 31.12.2020
In 2022 / 2021 ............................................................................................................ 7.966 8.557
In 2023 / 2022 ............................................................................................................ 6.285 8.787
In 2024 / 2023 ............................................................................................................ 8.029 6.173
In 2025 / 2024 ............................................................................................................ 25.318 7.067
Later ........................................................................................................................... 671 1.278
48.269 31.862
The Group's subsidiaries in UK and Ireland (Northern Europe division) entered into a loan agreement with a foreign
bank which was finalised in December 2021. The total loan amount was GBP 27.5 million with GBP 22.5 million of
that being a revolving borrowing base facility against inventories and receivables in UK and Ireland and GBP 5
million three year term loan against pledge in the Group's production facility in UK.
The Group´s main sources of financing are a multi currency revolving credit facility with an Icelandic financial
institution, a 4 year unsecured bond listed on Nasdaq Iceland, two six months bills listed on Nasdaq Iceland, credit
facilities with number of banks in Spain which finance the Southern Europe division and credit facilities with a
foreign bank which finance the N-Europe division.
The contractual repayments of non-current borrowings are as follows:
Borrowings are secured with most of the Group's assets, except from assets and equity of the Spanish subsidiaries.
The revolving credits are secured with inventories, receivables, intellectual property rights and shares in
subsidiaries. The other bank loans are secured with inventories, receivables and PP&E. The finance leases are
secured with the assets leased.
The Group has credit facilities in place with number of banks in Spain. Total amount of these loans was EUR 45.6
million at year end (2020: EUR 49.1 million).
The facility with the institution in Iceland has a cap of EUR 20 million with zero draw down at year end (2020: EUR
36.0 million). The facility expires in May 2022.
The parent company concluded a private placement of 4 years unsecured bond, in June 2021. The amount of the
placement was ISK 3.400 million and was fixed at EUR 23.1 million. The bond has semiannually interest payments,
balance will be paid with one installment in June 2025. The bond is listed on Nasdaq Iceland.
The parent company concluded two offerings of 6 months bills for ISK 1.500 million each, in the second half of the
year. In both cases hedging was put in place to fix the liability in EUR. The total fixed amount at year end 2021
amounts to EUR 20.4 million. The bills are listed on Nasdaq Iceland.
Iceland Seafood International hf. 30
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
Borrowings 2021 2020
At 1 January ................................................................................................................ 111.775 75.108
Acquired on acquisition of a subsidiary .................................................................... 737 2.721
Net decrease in revolving credit facility .................................................................... (6.740) (2.795)
Increase in unsecured bond ....................................................................................... 23.098
Increase in bills ........................................................................................................... 27 18.962
New borrowings ......................................................................................................... 5.955 22.589
Repayments ............................................................................................................... (12.649) (4.780)
FX impact long term loans ......................................................................................... (265) (30)
At 31 December ......................................................................................................... 121.938 111.775
19.4 Weighted average interests
19.5 Assets pledged as security
20. Other liabilities
31.12.2021 31.12.2020
Accrued payroll related expenses ............................................................................. 2.374 1.625
Accrued other expenses ............................................................................................ 2.599 3.138
Deferred payments .................................................................................................... 2.950
Income tax .................................................................................................................. 2.994 743
Value added tax ......................................................................................................... 478 472
Fair value of cash flow hedges ................................................................................... 527 1.675
8.972 10.603
21. Leases
21.1 Leased assets
Property Machinery
and land and equipment Total
Balance at 1 January 2021 ............................................................... 1.043 683 1.726
New or renewed leases ................................................................... 108 813 921
Eliminated on disposal ..................................................................... (164) (164)
Depreciation .................................................................................... (201) (360) (561)
Balance at 31 December 2021 .........................................................
786 1.136 1.922
Borrowings are secured with most of the Group's assets, except from assets and equity of the Spanish subsidiaries.
The revolving credits are secured with inventories, receivables, intellectual property rights and shares in
subsidiaries. The other bank loans are secured with inventories, receivables and PP&E. The finance leases are
secured with the assets leased.
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and
non–cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash
flows will be, classified in the Group’s Consolidated Statement of Cash Flows as cash flows from financing activities.
Weighted average interests rate on longterm loans in 2021 are 2.3% (2020: 1.8%).
19.3 Reconciliation of liabilities arising from financing activities
Iceland Seafood International hf. 31
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
21.2 Recognised in profit and loss
2021 2020
Depreciation expense from leased assets ................................................................. 561 567
Interest expense on lease liabilities ............................................................................ 112 118
Total amount recognised in profit and loss ................................................................ 673 685
21.3 Lease liabilities
Maturity analysis (not discounted)
31.12.2021 31.12.2020
Not later than 1 year .................................................................................................. 759 679
Later than 1 year and not later than 5 years ............................................................. 1.074 959
Later than 5 year ........................................................................................................ 859 868
2.692 2.506
22. Financial instruments
22.1 Categories of financial instruments 31.12.2021 31.12.2020
Financial assets
Fair value through profit or loss (other investments) ............................................... 43 39
Amortised cost (trade and other receivables) .......................................................... 65.702 48.789
Amortised cost (other assets) .................................................................................... 291 1.061
Derivative instruments in designated hedge accounting relationships ................... 67.866 49.781
Cash and bank balances ............................................................................................. 27.766 23.269
Financial liabilities
Amortised cost (borrowings) ..................................................................................... 121.938 111.775
Amortised cost (trade and other payables) .............................................................. 52.239 39.333
Amortised cost (other liabilities) ............................................................................... 4.591 8.482
22.2 Financial risk management objectives
The Company's Board of Directors and senior executive team has the overall responsibility for the establishment
and oversight of the Group's risk management framework, with regards to market risk, credit risk, liquidity risk and
operational risk. The objective of the Group's risk policies is to manage and control risk exposures within
acceptable levels, while optimizing the return.
The total cash outflow for leases amount to EUR 0.6 million (2020: 0.7 million).
Iceland Seafood International hf. 32
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
22.3 Foreign currency risk management
Assets Liabilities
31.12.2021 31.12.2020 31.12.2021 31.12.2020
GBP ..................................................................... 696 10.474 2.022 12.117
USD ..................................................................... 29.552 29.457 8.096 5.353
ISK ....................................................................... 633 2.420 44.294 19.859
ARS ...................................................................... 1.227 2.625 3.179 2.809
Other ................................................................... 4.197 6.136 15 163
36.305 51.112 57.606 40.301
Sensitivity analysis
2021 2020
GBP ............................................................................................................................. 106 113
USD ............................................................................................................................. (1.718) (1.991)
ISK ............................................................................................................................... 3.493 1.355
ARS ............................................................................................................................. 146 13
EUR ............................................................................................................................. (303) (109)
CAD ............................................................................................................................. (28) 8
JPY .............................................................................................................................. (8) (8)
NOK ............................................................................................................................ 0 (471)
EUR: 2021 2020 2021 2020
GBP ..................................................................... 0,8597 0,8901 0,8396 0,8966
USD ..................................................................... 1,1821 1,1423 1,1372 1,2232
ISK ....................................................................... 150,1900 154,5200 147,0800 155,5500
JPY ....................................................................... 129,7881 121,8522 131,3214 126,4634
CAD ..................................................................... 1,4826 1,5307 1,4366 1,5583
NOK ..................................................................... 10,1607 10,7150 10,0327 10,4677
The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the
end of the reporting period are as follows.
A 10% strengthening of the EUR against the following currencies at 31 December would have changed result after
income tax by the amounts shown below. This analysis assumes that all other variables, in particular interest rates,
remain constant.
A 10% weakening of the EUR against the above currencies would have had the equal but opposite effect on the
above
currencies to the amounts shown above on the basis that all other variables remain constant. The following
Average rate Closing rate
The Group's foreign currency forward contracts are measured at fair value with discounted cash flow valuation
techniques. Future cash flow (which is all anticipated within the next 12 months) is estimated based on forward
exchange rates (from observable forwar exchange rates at the end of the reporting period) and contract forward
rates, discounted at a rate that reflects the credit risk of various counterparties.
Iceland Seafood International hf. 33
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
22.4 Interest rate risk management
Variable rate instruments 31.12.2021 31.12.2020
Financial assets .......................................................................................................... 27.766 23.269
Financial liabilities ...................................................................................................... (121.938) (111.775)
(94.172) (88.506)
22.5 Credit risk management
22.6 Liquidity risk management
Carrying Contractual Less than More than
31 December 2021 amount cash flow 1 year 1-3 years 3 years
Non-current borrowings* ...... 50.407 53.233 10.186 15.862 27.185
Current borrowings ................ 73.669 73.669 73.669
Other liabilities ....................... 56.830 56.830 56.830
180.906 183.732 140.685 15.862 27.185
Carrying Contractual Less than More than
31 December 2020 amount cash flow 1 year 1-3 years 3 years
Non-current borrowings* ...... 33.821 34.496 12.817 14.502 7.177
Current borrowings ................ 79.913 79.913 79.913
Other liabilities ....................... 47.815 47.815 47.815
161.549 162.224 140.545 14.502 7.177
*Non- current borrowings includes Long term loans and leases
At the reporting date the interest rate profile of the Group's interest bearing financial instruments was:
Trade receivables consist of a large number of customers spread across geographic areas. The maximum credit risk
of financial assets is their book value. The Group manages its credit risk by using credit insurances alongside
ongoing credit evaluation on the financial conditions of relevant customers. Following the Covid19 outbreak the
Group has tighened its risk controls further, at year end 73% of receivables are credit insured. Further information
about credit risk is shown in notes 14 and 25.15.
The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities,
including estimated interest payments.
A change of 50 basis points in interest rates during the year would have impacted pre-tax profits by EUR 520
thousands (2020: 415 thousands).
The Group manages liquidity risk by ensuring sufficient liquidity is available from current bank facilities to meet
foreseable needs and to invest cash assets safely and profitably. This policy has remained unchanged from
previous periods. The Group has taken certain actions during 2021, to secure liquidity and ongoing funding of the
operation. The parent company concluded a private placement of 4 years unsecured bond, in June 2021. The
amount of the placement was ISK 3.400 million and was fixed at EUR 23.1 million. In December 2021 the Group's
subsidiaries in UK and Ireland (Northern Europe division) entered into a loan agreement with a foreign bank,
securing a funding of GBP 27.5 million in total. At end of 2021 the total funding headroom of the Group was 48.9
million plus cash position of 27.8 million.
Iceland Seafood International hf. 34
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
22.7 Fair value measurements
23. Related party transactions
23.1 Trading transactions
2021 2020
Purchases of goods and services, from companies related to Board Members ...... 90.863 76.629
31.12.2021 31.12.2020
Amounts owed to companies related to Board Members ....................................... 15.138 14.047
Amounts owed by companies related to Board Members ....................................... 63
23.2 Compensation to key management personnel
Shares at 2021
2021 2020 year end*
Liv Bergþórsdóttir, Chairman ......................................................... 55 46 1.200
Bergþór Baldvinsson, Board Member ........................................... 28 20 276.998
Halldór Leifsson, Board Member ................................................... 27 20 278.998
Ingunn Agnes Kro, Board Member ................................................ 29 26
Jakob Valgeir Flosason, Board Member ........................................ 27 26 273.998
Gunnlaugur K Hreinsson, Alternate Board Member ..................... 3 3 14.997
Magnús Bjarnason, former Chairman ........................................... 0 11 1.212
Bjarni Ármannsson, CEO ................................................................ 327 335 294.000
Other Executive management** ................................................... 211 217 550
management ................................................................................ 707 704 1.141.953
24. Approval of financial statements
The Consolidated Financial Statements were approved by the Board of Directors and the CEO and authorised for
issue on 22 February 2022.
** Reynir Jónsson, CFO
Purchases of goods and services from and sales to related parties were made at the same prices and terms to non
related parties.
The directors consider that the carrying amounts of financial assets and financial liabilities recognised in the
Consolidated Financial Statements approximate their fair values.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the
Group and other related parties are disclosed below.
The remuneration of directors and other members of key management is determined by a Remuneration
Committee, having regarded to their performance, general market trends and other factors.
The remuneration of directors and other members of key management personnel was as follows:
The following balances were outstanding at the end of the reporting period:
* Number of shares (in thousands) held directly by Directors and Executive Management or parties related to them.
Total salaries and benefits for the BOD and executive
During the year, Group entities entered into the following trading transactions with related parties that are not
members of the Group:
Iceland Seafood International hf. 35
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
25. Significant accounting policies
25.1 Statement of compliance
25.2 Basis of preparation
25.3 Basis of consolidation
The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union and additional disclosure requirements in the Icelandic Act no. 3/2006 on
Financial Statements.
The Consolidated Financial Statements have been prepared on the historical cost basis except for certain properties
and financial instruments that are measured at revalued amounts or fair values at the end of each reporting period,
as explained in the accounting policies below. Share-based payments transactions are valued according to IFRS 2.
Profit or loss and each component of Other Comprehensive Income are attributed to the owners of the Company
and to the non-controlling interests. Total Comprehensive Income of subsidiaries is attributed to the owners of the
Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit
balance.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
The Consolidated Financial Statements incorporate the Financial Statements of the Company and entities
controlled by the Group. Control is achieved when the Group has power over the subsidiaries, is exposed, or has
rights, to variable returns from its involvement with the subsidiary and has the ability to use its power to affect its
returns.
The Company reassesses whether or not it controls an entity if facts and circumstances indicate that there are
changes to one or more of the three elements of control listed above.
▪ the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote
holders;
▪ potential voting rights held by the Company, other vote holders or other parties;
▪ rights arising from other contractual arrangements; and
▪ any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to
direct the relevant activities at the time that decisions need to be made, including voting patterns at previous
shareholders' meetings.
The same accounting policies (except mentioned here above), presentation and methods of computation are
followed in these Consolidated Financial Statements as were applied in the latest Financial Statements for the year
ended 31 December 2020.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated statement of profit or loss and other comprehensive income from
the date the Company gains control until the date when the Company ceases to control the subsidiary.
When the Company has less than a majority of the voting rights of an entity, it has power over the entity when the
voting rights are sufficient to give it the practical ability to direct the relevant activities of the entity unilaterally.
The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting
rights in an entity are sufficient to give it power, including:
Iceland Seafood International hf. 36
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
25.4 Changes in the Group's ownership interests in existing subsidiaries
25.5 Goodwill
25.6 Non-current assets held for sale
When necessary, adjustments are made to the Financial Statements of subsidiaries to bring their accounting
policies into line with the Group's accounting policies.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all the assets and liabilities of
that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the
Group will retain a non-controlling interest in its former subsidiary after the sale.
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use. This condition is considered as met only
when the sale is highly probable and the non-current asset (or disposal group) is available for immediate sale in its
present condition.
Management must be committed to the sale, which should be expected to qualify for recognition as a completed
sale within one year from the date of classification.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation.
Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the
subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-
controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference
between the amount by which the non-controlling interests are adjusted and the fair value of the consideration
paid or received is recognised directly in equity and attributed to owners of the Company.
Non-current assets (and disposals groups) classified as held for sale are measured at the lower of their previous
carrying amount and fair value less costs to sell.
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the
business, less accumulated impairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or
groups of cash-generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently
when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is
less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in
the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for
goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
Iceland Seafood International hf. 37
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
25.7 Revenue recognition
25.7.1 Sale of seafood
25.7.2 Dividend and interest income
25.8 Leasing
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for
estimated customer returns, rebates and other similar allowances.
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and
the leased asset. The related payments are recognised as an expense in the period in which the event or condition
that triggers those payments occurs.
Leased assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease
transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to
exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset.
The depreciation starts at the commencement date of the lease.
Revenue from the sale of goods is recognised when control of the goods has transferred, being at the point the
goods are delivered to the customer and titles have passed. A receivable is recognised by the Group when the
goods are delivered to the customer as this represents the point in time at which the right to consideration
becomes unconditional, as only the passage of time is required before payment is due. There is no right of return
under the Group's return policy and therefore no refund liability is recognised.
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying
amount on initial recognition. Dividend income from investments is recognised when the shareholder's right to
receive payment has been established.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for
any lease and associated non-lease components as a single arrangement. The Group has used this practical
expedient.
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a
leased asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee,
except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value
assets. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis
over the term of the lease unless another systematic basis is more representative of the time pattern in which
economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined,
the Group uses its incremental borrowing rate. The lease payments included in the measurement of the lease
liability comprise fixed payments less any incentives, variable lease payments that depend on an index or rate,
expected residual guarantees and the excercise price of purchase options if the Group expects to excercise the
option.
Iceland Seafood International hf. 38
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
25.9 Foreign currencies
25.10 Employee benefits
25.10.1 Short-term and other long-term employee benefits
25.10.2 Share based payment arrangements
Payments to defined contribution retirement benefit plans are recognized as an expense when employees have
rendered service entitling them to the contributions.
A liability is recognised for benefits accruing to employees in respect of wages and salaries and annual leave in the
year the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange
for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the
benefits expected to be paid in exchange for the related service.
Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the
grant date.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-
line basis over the vesting period, based on the Group's estimate of equity instruments that will eventually vest,
with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the
number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is
recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding
adjustment to the equity-settled employee benefits reserve.
The Group’s Consolidated Financial Statements are presented in Euro, the Group’s presentation currency. In
preparing the Financial Statements of each individual group entity, transactions in foreign currencies other than the
entity's functional currency are recognised at the rates of exchange prevailing on the dates of the transactions.
Monetary assets and liabilities denominated in such currencies are retranslated at the rates prevailing on the
balance sheet date. Profits and losses arising on exchange are included in net profit or loss for the period.
For the purpose of presenting Consolidated Financial Statements, the assets and liabilities of the Group´s foreign
operations (including comparatives) are expressed in Euro using exchange rates prevailing on the balance sheet
date. Income and expense items of foreign operations, are translated at the average exchange rates for each
month. Translation differences from foreign operations are posted to translation reserves among equity. Such
translation differences are recognised as income or as expenses in the period in which the operation is disposed of.
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a
foreign operation are treated as asset and liabilities of the foreign operation and translated at the rate of exchange
prevailing at end of each reporting period. Exchange differences are recognised in other comprehensive income.
Iceland Seafood International hf. 39
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
25.11 Taxation
25.11.1 Current tax
25.11.2 Deferred tax
25.11.3 Current and deferred tax for the year
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to
be recovered.
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as
reported in the Consolidated Income Statement because of items of income or expense that are taxable or
deductible in other years and items that are never taxable or deductible. The Group's current tax is calculated
using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
Consolidated Financial Statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are
generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits
will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting
profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial
recognition of goodwill.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of
its assets and liabilities.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in
other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the
initial accounting for a business combination, the tax effect is included in the accounting for the business
combination.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from
deductible temporary differences associated with such investments and interests are only recognised to the extent
that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary
differences and they are expected to reverse in the foreseeable future.
Iceland Seafood International hf. 40
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
25.12 Property, plant and equipment
25.13 Intangible assets
25.14 Inventories
25.15 Financial assets
25.15.1 Recognition of financial assets
25.15.2 Financial assets at amortised cost
25.15.3 Financial assets at fair value
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their
estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Financial assets are recognized when the Group becomes a party to the contractual provisions of the instrument.
Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition
or issue of financial assets (other than financial assets at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets at fair value through profit or loss are recognised immediately in
profit or loss.
In the disposal or retirement of an asset is determined as the difference between the sales proceeds and the
carrying amount of the asset and is recognized in the Consolidated Income Statement.
Financial assets at amortised cost are debt instruments that are held within a business model whose objective is to
collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and
interest on the principal amount outstanding. The Group's financial assets measured at amortised cost are trade
and other receivables, bank balances and cash.
Debt instruments that are held within a business model whose objective is both to collect the contractual cash
flows and to sell the debt instruments, and that have contractual cash flows that are solely payments of principal
and interest on the principal amount outstanding, are measured subsequently at fair value through other
comprehensive income (FVTOCI). All other debt investments and equity investments are measured subsequently at
fair value through profit or loss (FVTPL). The Group currently holds no financial assets measured at fair value.
Property and equipment are recognized as an asset when it is probable that future economic benefits associated
with the asset will flow to the Group and the cost of the asset can be measured in a reliable manner. Property and
equipment is stated at cost, net of accumulated depreciation and/or accumulated impairment losses, if any. Land
is not depreciated. Such cost includes the cost of replacing parts of the property and equipment if the recognition
criteria are met. When significant parts of property and equipment are required to be replaced at intervals, the
Group recognizes such parts as individual assets with specific useful lives and depreciation, respectively. All other
repair and maintenance costs are recognized in profit or loss as incurred.
The depreciable amount of the asset is allocated on a straight-line basis over its useful life. The depreciation charge
for each period is recognized as an expense. The estimated useful lives, residual values and depreciation method
are reviewed at each balance sheet date, with the effect of any changes in estimate accounted for on a prospective
basis.
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a first-
in-first-out basis. Net realisable value represents the estimated selling price for inventories less all estimated costs
of completion and costs necessary to make the sale.
Iceland Seafood International hf. 41
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
25.15.4 Impairment of financial assets
25.15.5 Derecognition of financial assets
25.16 Financial liabilities and equity instruments
25.16.1 Financial liabilities
25.17 Hedge accounting
25.17.1 Cash flow hedges
The Group recognises a loss allowance for expected credit losses (ECL) on its trade receivables, that are measured
at amortised cost. The amount of expected credit losses is updated at each reporting date to reflect changes in
credit risk since initial recognition of the respective financial instrument.
Financial liabilities are classified as ‘other financial liabilities'. Other financial liabilities (including borrowings and
trade and other payables) are subsequently measured at amortised cost using the effective interest method.
The Group designates certain hedging instruments, which include derivatives in respect of cash flow hedges.
Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. The Group has
elected to continue to apply the hedging requirements of IAS 39, as permitted by IFRS 9.
At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument
and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge
transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether
the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item
attributable to the hedged risk.
On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the
sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other
comprehensive income and accumulated in equity is recognised in profit or loss.
The Group always recognises lifetime ECL for trade receivables. The expected credit losses on these financial assets
are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors
that are specific to the debtors, general economic conditions and an assessment of both the current as well as the
forecast direction of conditions at the reporting date, including time value of money where appropriate. The
Group's estimate for trade receivable ECL is described in detail in note 14.
The Group writes off a financial asset when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery. When a trade receivable is considered uncollectible, it is
written off against the allowance account. Subsequent recoveries of amounts previously written off are credited
against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit
or loss.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges
is recognised in other comprehensive income and accumulated under the heading of cash flow hedging reserve.
The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in the
‘other gains and losses' line item.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
party.
Iceland Seafood International hf. 42
Amounts in EUR thousands
Financial Statements 2021 - Audited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
26. Critical accounting judgements and key sources of estimation uncertainty
27. Application of new and revised International Financial Reporting Standards (IFRSs)
27.1 Amendments to IFRSs that are mandatorily effective for the current year
27.2 New and revised IFRSs in issue but not yet effective
- IAS 16 Property, Plant and equipment Proceeds before intended use
- IAS 37 Provisions, contingent liabilities and contingent assets Onerous Contracts, cost of fullfilling a contract
- IFRS 3 Business Combinations Reference to Conceptual Framework
- 2018-2020 Annual Improvements cycle Minor amendments to four IFRSs
The Management of the Company do not expect that the adoption of the amended Standards listed above or other
issued new standards and amendments scheduled that become effective in subsequent periods will have a material
impact on the Consolidated Financial Statements of the Group in future periods.
In the current year, the Group has applied a number of amendments to IFRSs issued by the International
Accounting Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1
January 2021. Their adoption has not had any material impact on the disclosures or on the amounts reported in
these Consolidated Financial Statements.
In the application of the Group's accounting policies, the management of the Company are required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and future periods.
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to
which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash
flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present
value.
The Group has not early adopted new standards or amendments to IFRSs that have been issued and are permitted
for early adoption. The following amendments are effective from 1 January 2022:
Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument
expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss
recognised in other comprehensive income and accumulated in equity at that time remains in equity and is
recognised when the forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is
no longer expected to occur, the gain or loss accumulated in equity is recognised immediately in profit or loss.
Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit
or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised hedged item.
However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial
liability, the gains and losses previously recognised in other comprehensive income and accumulated in equity are
transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-
financial liability.
Iceland Seafood International hf. 43
Amounts in EUR thousands
Financial Statements 2021 - Audited
Quarterly Statements (unaudited)
for the year ended 31 December 2021
Quarterly Statements
For the year 2021
Q4 Q3 Q2 Q1 Total
Revenue:
Sales of seafood ............................ 147.468 128.149 116.792 119.299 511.708
Eliminations .................................. (17.998) (16.846) (12.868) (14.947) (62.659)
129.470 111.303 103.924 104.352 449.049
Operating results:
Operating profit ............................ 4.955 4.157 1.290 4.343 14.745
Net finance costs .......................... (579) (762) (272) (596) (2.209)
Normalised PBT .......................... 4.376 3.395 1.018 3.747 12.536
Income tax .................................... (1.022) (1.105) (226) (880) (3.233)
Normalised profit ........................
3.354 2.290 792 2.867 9.303
Significant items and discontinued
operations ................................... (139) (173) (72) (146) (530)
Profit ...........................................
3.215 2.117 720 2.721 8.773
Assets ............................................ 279.353 263.956 249.148 261.465
Liabilities ....................................... 187.619 175.246 170.274 183.308
For the year 2020
Q4 Q3 Q2 Q1 Total
Revenue:
Sales of seafood ............................ 101.797 105.989 82.320 121.581 411.687
Eliminations .................................. (8.175) (10.310) (7.288) (16.074) (41.847)
93.622 95.679 75.032 105.507 369.840
Operating results:
Operating profit ............................ 1.347 1.396 710 3.515 6.968
Net finance costs .......................... 714 (990) (1.012) (610) (1.898)
Normalised PBT .......................... 2.061 406 (302) 2.905 5.070
Income tax .................................... (358) (256) (28) (711) (1.353)
Normalised profit (loss) .............. 1.703 150 (330) 2.194 3.717
Significant items and discontinued
operations ................................... (1.868) (500) (209) (344) (2.921)
Profit (loss) ..................................
(165) (350) (539) 1.850 796
Assets ............................................ 241.467 229.598 237.729 216.653
Liabilities ....................................... 166.150 147.162 154.927 155.359
The Group´s quarterly statements are not audited. Summary of the Group´s results by quarters is specified as follows:
Iceland Seafood International hf. 44
Amounts in EUR thousands
Financial Statements 2021
Non-Financial Information (unaudited)
for the year ended 31 December 2021
About the Company
Environmental, Social and Governance (ESG) - non-financial
Quality control
Environment
Effect of climate change
Iceland Seafood International hf ("The Company") is a holding company for a Group of subsidiaries that are leading
suppliers of North Atlantic seafood and one of the largest exporters of seafood from Iceland. The Group is
headquartered in Iceland and has subsidiaries in the United Kingdom, Ireland, Spain, Argentina, Iceland, France and
Germany.
ESG numbers are collected and reviewed respectively in each business before they are sent to head of ESG, where
results of the KPIs are combined for the final report, outcomes calculated, and impacts assessed. The Company is
continuously improving on internal documentation and processes and intends to get external verification within the next
few years.
The Company objective is that business should be conducted honestly, fairly, and legally throughout the value chain
across the Groups operations. There are policies in place on Corporate Social Responsibility and Environmental matters,
both have been approved by the Board. The identified KPIs for these matters are reported on both in the Annual Report
as well as in a dedicated ESG report.
The key ESG aspects for the Group are:
•Sustainable fisheries
•Energy use
•Greenhouse gas emissions
•Water use
•Waste
•Health and safety of employers
•Non-discriminaon
•Child & forced labour
•Fair labour pracces
•Human rights
•An-bribery/an-corrupon
•Tax transparency
The awareness of the Company and its employees of the importance of ESG matters have steadily increased during the
past few years. Regular measurements and reporting are constantly being improved. This is detailed further in the ESG
report where the impacts of the policies are identified.
The Company depends on the ocean for its operation and sets focus on climate change throughout its operation.
Climate change could affect the Company in various ways but the two following have been identified as the major risk
factors.
Ocean acidification: Majority of the global carbon cycle is circulated through the ocean which absorbs the greater part
of excess heat from GHG emissions causing acidification. The ocean is the home to a vast variety of marine species and
acidification disrupts the balance of life found in the ocean which can affect seafood supplies.
Extreme weather events: Climate change increases the frequency of extreme weather events. This can affect the
availability of seafood due to dangerous sea conditions as well as delaying transportation of seafood from producer to
the end consumer.
Iceland Seafood International hf. 45 Financial Statements 2021
Non-Financial Information (unaudited)
for the year ended 31 December 2021
Supply chain and sustainable fisheries
Social & Governance
Food safety
Employees
Health & Safety of employees
The Group's operations are made up of a highly experienced group of 944 employees, from various countries,
backgrounds, and cultures. The Group focuses on the importance of attracting employees with the right skills and
ambition to provide high quality service, exceed customer demands and achieve the Company’s financial and strategic
goals. The objective is to ensure that the employees feel empowered to deliver to the highest standards by being
connected to our producers and customers.
Health and safety of staff is an essentially important for the Company. Covid has posed certain challenges to the
operation of Iceland Seafood. Management in each subsidiary oversees compliance with all local laws and regulations.
Production sites have in place appropriate OHS and emergency preparedness and response management systems. Value
added division are a part of essential operation and therefore did not shut down during covid lock down periods.
Employee safety was ensured with appropriate PPE, physical distancing and by separating groups. Metrics on
operational health and safety will be reported in the company's ESG report.
Iceland Seafood is committed to be fair, equitable and respectful to employees, associates, competitors, customers, the
society, and all business or professional relationships. This is detailed in the Group's CSR policy that covers human rights,
fair labour practices, non-discrimination, anti-bribery/corruption, and tax transparency. The main social impact and
concern of Iceland Seafood is on its employees and their families. The company strives to supply its employees with a
good and save work environment. Iceland Seafood recognises and supports international human right treaties. No
human right violations have been reported in 2021. Key metrics regarding the social aspects of Iceland Seafood's
operations and more details on the CSR policy will be documented in the ESG report for 2021.
Food safety is of critical importance for the company. Factories within the Group have food safety management systems
in place to ensure appropriate food safety standards. These systems cover suppliers, contractors, distributors as well as
the production facilities and processes. They include detailed specifications for raw material and finished product and
procedures for Good Manufacturing Practice. A thorough product traceability systems are in place within the Group's
businesses and product recall procedures that are tested regularly. These systems are certified to international
standards and as such are audited regularly by an independent third-party auditor. All production sites are also subject
to inspections for compliance with applicable food laws by local authorities.
The adequacy and sustainability of the company's supply chain are of critical importance for the Group. Covid has
increased the Company resilience as well as lowering the environmental impact. Products previously only supplied from
Asia are now also being supplied from Europe. Covid has therefore made the overall supply chain more resilient while
also shortening overall transportation distances and subsequently improving on the environmental aspects.
Iceland Seafood is committed to supplying sustainable seafood and to work with the industry on fishery improvements
and best practices. There is a deep understanding of the risks related to each type of supplier and market within the
trading part of the company. The risks are continuously assessed and monitored during the relationships with suppliers.
All production sites are also subject to inspections for compliance with applicable food laws, including traceability
requirements, by local authorities.
Iceland Seafood International hf. 46 Financial Statements 2021
Statement of Corporate Governance
About Iceland Seafood International
Corporate Governance structure
Board of Directors
The Company adheres to the principles set forth in the Corporate Governance Guidelines, published by the Iceland
Chamber of Commerce in co-operation with SA Business Iceland and Nasdaq Iceland (hereafter referred to as the
“Guidelines”). As of the date of this statement there are two deviations from full compliance with the Guidelines. The
Company does not have a board nomination committee, the reason being that due to the nature of the Company and
close connection to the seafood sector, it is considered important to have representatives from key seafood suppliers
of the Company on its board. These board members bring both valuable sourcing capabilities and sector knowledge to
the board of Iceland Seafood. At the date of this statement, three of five board members of the Company are directors
and/or owners of key suppliers of Iceland Seafood and are as such not independent from the company. These board
members do not participate in dealings with items connected to their own business or business that is related to
them, except from normal trading of seafood.
Iceland Seafood International hf (hereafter referred to as “Iceland Seafood“, the “Company“ or “ISI”) is a holding
company for Group of subsidiaries, that are leading suppliers of North Atlantic seafood and one of the largest
exporters of seafood from Iceland. The Group is headquartered in Iceland and has subsidiaries in the United Kingdom,
Ireland, Spain, Argentina, Iceland, France, and Germany. The Group operates across three divisions; Value-Added
Southern Europe, Value-Added Northern Europe and our Sales and Distribution Division. The Value-Added Divisions
have processing factories and cold stores in their respective regions with Southern Europe also having a satellite
facility in Argentina.
Iceland Seafood's corporate governance framework is defined by Act No. 2/1995 on Public Limited Companies
(hereafter referred to as the “Act on Public Companies“), the Nasdaq Iceland Rules and is set out in the Company’s
Articles of Association. Under its Articles of Association, the Company is governed by shareholders' meetings, the
Company's Board of Directors (hereafter referred to as the “Board of Directors” or the “Board”) and the Chief
Executive Officer. The Shareholders hold the decision-making powers in the Company through shareholders meetings
that are held at least once a year. The Board of Directors is authorized to allow shareholders to participate in
proceedings at shareholders’ meetings through electronic means without being present at the meeting venue if it
deems that available equipment is sufficiently secure for this purpose. When organising shareholders meetings, the
Board does so in a manner that allows shareholders to exercise their decision powers and express their opinions, i.e.,
by publishing all information and documents on the Company’s website. Between shareholders meetings, the Board
holds supreme authority of the Company. In accordance with Article 70 (5) of the Act on Public Companies the Board
of Directors has set itself formal Rules of Procedure which are supplementary to the Articles. According to the Rules
the Board of Directors may elect committees that operate on behalf of the Board. All Board committees set
themselves specific rules of procedure.
The Company's Board of Directors shall be composed of three to five members and up to two alternate members,
elected at the Annual General Meeting for a term of one year. In 2021 the total number of Board meetings was 14 and
the Board was competent to make decisions in all meetings. The Board annually evaluates its own work, the work of
the CEO and the Company’s operation. This assessment is based on self-assessment of the board, examination of
whether the Board has operated in accordance with its Rules of Procedures. The Board shall evaluate the work of the
CEO and the Company’s operation in general, the CEO shall not be present for this evaluation. The Chairman of the
Board shall present and discuss the results of the assessment with the CEO. The Board currently consists of five main
members and one alternate member. As of the date of this statement the Board of Directors consists of the following
members:
Iceland Seafood International hf. 47 Financial Statements 2021
Statement of Corporate Governance
Liv Bergþórsdóttir was appointed CEO of ORF Genetics in April 2020.
She joined ORF Genetics after 20 years in the telecommunication
industry. Liv led the launch of the telecommunications company
Nova in 2006 and was the CEO of Nova until 2018. Prior to that, she
was the CEO of the mobile phone company Sko and Director of
Sales and Marketing at Og Vodafone and Tal.
In recent years Liv has also served on the boards of several
companies, both in Iceland and abroad. Liv is a business graduate
from the University of Iceland and has completed AMP studies at
IESE Barcelona Business School.
Board member
Name: Jakob Valgeir Flosason
Liv is the CEO of ORF Genetics/BIOEFFECT.
Liv holds 1.200.000 shares through the holding company 54 ehf
Chairman of the Board of Directors
Name: Liv Bergþórsdóttir
First elected: February 2019
Education and experience:
Current member of board or management:
Jakob has an extensive knowledge of the Icelandic fishing industry
from all perspectives, a knowledge that not many people possess.
He has been involved in every aspect of the sector from early age,
working in factories, on fishing boats and building up the family
company to become one of the most technology advanced and
leading company within the Icelandic fishing sector.
Shareholdings in the Company as at 31.12.2021
and other interest related to large
shareholders, competitors, customers or
Shareholdings in the Company as at 31.12.2021
and other interest related to large
shareholders, competitors, customers or
suppliers
Jakob Valgeir ehf., owned by Jakob, his wife, and his father, holds
273,997,713 shares. Jakob Valgeir ehf. is also a large supplier of
seafood to the Company.
Jakob is currently a board member of Sigurbjörg ehf., HRock ehf.,
BB29 ehf., Klofningur ehf., Valgeir ehf., B1917 ehf., Sýr ehf., Itsorf
ehf., Salting ehf., Breiðhella ehf., Karlsbali ehf., Gafl ehf.,
Hamarshöfði 4 ehf., B15 ehf., Fiskmarkaður Vestfjarða hf. and EA 30
ehf. in addition to his board membership with the Company.
First elected: February 2019
Education and experience:
Member of board or manangement
Iceland Seafood International hf. 48 Financial Statements 2021
Statement of Corporate Governance
Board member
Name: Bergþór Baldvinsson
First elected: March 2020
February 2019 as an alternate board member and as a board
member from March 2020
Name: Ingunn Agnes Kro
First elected:
Education and experience: Ingunn is the general manager of Jarðvarmi slhf. Previously Ingunn
was a Director of Administration and Communication at Skeljungur
hf., a company listed on Nasdaq Iceland, heading internal and
external communication, incl. legal matters, marketing, public
relations and human resources, and before that the company´s
general counsel, compliance officer and secretary to the board.
Ingunn holds a B.A. and M.A. degree in law and an MBA from the
University of Iceland, as well as being a certified district court
attorney and securities broker.
Board member
Education and experience: Bergþór has been the CEO of Nesfiskur since 1979. Nesfiskur is a
family-owned company that Bergþór and his parents stated in 1975.
Working at Nesfiskur since a teenager, Bergþór has familiarized
himself with every aspect o the industry. The small family company
has grown constantly from the beginning, today Nesfiskur and its
subsidiaries employ around 400 people.
Bergþór has been a board member of various companies and
pension funds for the past two decades.
Member of board or manangement Bergþór is a board member of FSM hf, Umbúðamiðlun hf, Nesfiskur
ehf and companies within Nesfiskur Group.
Shareholdings in the Company as at 31.12.2021
and other interest related to large
shareholders, competitors, customers or
Nesfiskur ehf, owned by Bergþór and his family, holds 276,997,713
shares. Nesfiskur is also a large supplier of seafood to the Company.
Member of board or manangement Ingunn is currently a board member of Sjóvá Almennar tryggingar
hf. (insurance company), HS Orka hf. (electricity producer and
provider), Freyja slhf. (private equity fund) and the Wetlands fund
Shareholdings in the Company as at 31.12.2021
and other interest related to large
shareholders, competitors, customers or
None
Iceland Seafood International hf. 49 Financial Statements 2021
Statement of Corporate Governance
Board member
Halldor holds a degree in Fishery Technology from the Technical
University of Iceland and has studied Business Management in the
University of Reykjavík.
Board member
Name: Halldór Leifsson
First elected: March 2020
Education and experience: Halldór is Marketing and Sales Director at Fisk Seafood ehf. He has
worked in the seafood industry since 1990, in all the key segments
including management of production, fleet, sales, office, finance
and in the role of deputy MD and MD.
Name: Gunnlaugur K Hreinsson
First elected: March 2020 as alternate board member
Education and experience: Gunnlaugur K Hreinsson is the owner of GPG Seafood and alternate
companies. Gunnlaugur has decades of experience from the seafood
sector.
Member of board or manangement Halldór is the main owner and board member of the company Haf-
sjór slf.
Shareholdings in the Company as at 31.12.2021
and other interest related to large
shareholders, competitors, customers or
Fisk Seafood, the employer of Halldor, holds 278,997,713 shares.
Fisk Seafood is also a large supplier of seafood to the Company.
GPG Seafood operates four longliners out and four processing plants
in the north of Iceland. Gunnlaugur is also the largest shareholder
of the company Þórsnes ehf, a seafood company located in
Stykkisholmur.
Member of board or manangement Gunnlaugur is a board member of GPG Seafood, Þórsnes and related
companies.
Shareholdings in the Company as at 31.12.2021
and other interest related to large
shareholders, competitors, customers or
GPG Seafood, holds 14,997,030 shares. GPG Seafood and Þórsnes
are also large suppliers of seafood to the Company.
Iceland Seafood International hf. 50 Financial Statements 2021
Statement of Corporate Governance
Subcommitees
Audit Committee
Remuneration Committee
The Audit Committee ensures the quality of the financial statements and internal controls. It has oversight of the
external auditors. It also presents proposals for the selection of external auditors and ensures their independence. The
Audit Committee's main responsibilities include monitoring the integrity of the financial statements of the Group,
reviewing the effectiveness of the Group's internal controls and risk management systems and overseeing the
selection, appointment and relationship with the Group's external auditor.
The committee shall operate independently on behalf of the Board of Directors who shall elect the members of the
Audit Committee each year. The Audit Committee operates in accordance with rules of procedure approved by the
Board of Directors and shall be made up of 2-3 members. Committee members shall possess knowledge and
experience which is consistent with the work of the committee, at least one of the audit committee members shall be
a financial expert who has accounting or related financial expertise. The members shall be independent of the auditor
of the Group and the majority should be independent of the Company's management. Members of the Audit
Committee are Ingunn Agnes Kro, Bergþór Baldvinsson and Ágúst Kristinsson.
The committee shall meet at least four times a year, at appropriate times in the reporting and audit cycle and
otherwise as required. Only members of the Audit Committee have the right to attend committee meetings, however,
other individuals such as the chairman of the Board, chief executive, finance director, other directors and
representatives from the finance function may be invited to attend all or part of any meeting as and when
appropriate. Additionally, the external auditors are invited to attend meetings of the committee on a regular basis.
The Board is responsible for the appointment and activities of the Audit Committee and it operates under the Board's
authority. The Audit Committee does not reduce the responsibilities of the Board or relieve it of any responsibility.
The Remuneration Committee is responsible for establishing a remuneration policy for the Company. The
Remuneration Committee shall assist the Board in ensuring that compensation arrangements support the strategic
aims of the Company and enable the recruitment, motivation and retention of senior executives while also complying
with legal and regulatory requirements. The committee's main tasks include preparing and submitting annually a
proposal to the Board of Directors for the Company's remuneration policy, annually reviewing the Company's
compensation programs and monitoring that salary and any incentive schemes are in accordance with law and market
practice.
The Board of Directors appoints the members of the committee and its chairman. Neither the Company's chief
executive officer nor any of the Company's and its subsidiaries' top executives shall be appointed to the Remuneration
Committee. The committee operates in accordance with rules of procedure approved by the Board of Directors and
shall be made up of 2-3 members. It is preferable that the members of the committee have experience and knowledge
on guidelines and common practise regarding decision on executives' terms of employment. If deemed necessary, the
Remuneration Committee may seek the assistance of consultants, such consultants shall be independent of the
Company, its executives and the Board of Directors who are not deemed to be independent. The committee is
responsible for examining the consultant's experience. Members of the Remuneration Committee are Liv
Bergþórsdóttir, Jakob V Flosason and Halldór Leifsson.
The Board of Directors has appointed two subcommittees, Audit Committee and Remuneration Committee.
The Board is responsible for the appointment and activities of the Remuneration Committee and it operates under the
Board's authority. The Remuneration Committee does not reduce the responsibilities of the Board or relieve it of any
responsibility. The committee shall call meetings as often as necessary at their own initiative or at the request of the
other committee members, however, not less than twice a year.
Iceland Seafood International hf. 51 Financial Statements 2021
Statement of Corporate Governance
Executive Management
First employed: January 2019
Education and experience: Bjarni Ármannsson is a private investor. He is a significant investor
in Iceland Seafood International via Sjávarsýn ehf. – 100% owned by
him. Bjarni is a computer engineer from the University of Iceland in
1990 and graduated with an MBA from IMD in Switzerland in 1996.
Bjarni spent the lion share of his career in the banking industry in
Iceland, originally as a CEO for Kaupthing, an investment and
financial service company, later for the Icelandic Investment Bank
and as a CEO of Islandsbanki – a leading seafood service provider
out of Iceland.
Member of board or manangement Bjarni is currently a board member of Polar Maritime ehf., Fálkinn
Ísmar ehf., UB koltrefjar ehf., Sjávargrund ehf., Kemi ehf., Tandur
hf., Hliðarspor ehf., S4S ehf., Ellingsen ehf., Fáfnir Offshore ehf.,
Imagine Capital AS, Imagine capital BV, Sydvestor Troll AS, Cargow
BV, Samey Holding ehf, Samey Robotics ehf, Pizza Pizza ehf, PPH
ehf, Fjárfestingaráð Vex, SFS, Sjávarsýn fjárfestingar ehf and
Sjávarsýn ehf. in addition to several of the Company’s subsidiaries.
The Executive Management comprises the Company’s CEO and CFO. The CEO has charge of the day-to-day operations
of the Company and represents the Company in all matters concerning normal operations. The CEO shall manage the
accounts of the Company and employ the employees of the Company. The CEO shall grant Board members and
auditors all necessary information on the operations of the Company which they might request and should be granted
according to statutory law. The CEO of the company is Bjarni Ármannsson and the CFO is Reynir Jónsson.
CEO
Name: Bjarni Ármannsson
Shareholdings in the Company as at 31.12.2021
and other interest related to large
shareholders, competitors, customers or
Bjarni directly holds 294,000,000 shares through holding company
Sjávarsýn ehf. Bjarni does not hold options to purchase Shares in
the Company.
Iceland Seafood International hf. 52 Financial Statements 2021
Statement of Corporate Governance
Internal control and risk management
Corporate Social Responsible and Environmental Responsibility
Chief Financial Officer
Name: Reynir Jónsson
First employed: October 2013
The Board of Directors and the CEO are responsible for internal control and risk management of the Company. Internal
control and risk management procedures are designed to minimize risk of material misstatements. The Company does
not have an internal audit function, but the Audit Committee reviews the effectiveness of the Group's internal controls
and risk management systems.
An independent auditor or auditing company is elected at the Annual General Meeting for a term of one year. The
auditors shall be provided with any information requested in relation to its auditing services for the Company, they
shall always have full access to the Company’s books and documents. They shall audit the Company’s consolidated
financial statements in accordance with international standards on auditing, including a review of internal controls
and processes. Any significant findings in relation to the audit and review of internal controls are reported to the
Board of Directors through Audit Committee.
Effective risk management is important to minimise the risk of material misstatement and for the business to perform.
Iceland Seafood activities are exposed to variety of risk factors related to its operations and financials, such as
Currency Risk, Supplier Risk, Credit Risk, Liquidity Risk etc. Risk management within Iceland Seafood is governed by the
Board of Directors, while the Audit Committee is responsible for its review on a regular basis. The Executive
Management is responsible for identifying material risk and developing the risk management strategy.
The Board of Directors have set a Group policy’s on Corporate Social Responsibility and Environmental Responsibility.
The purpose or these policies is to set common standards for all Group companies regarding these topics and to make
sure the Group manages its environmental impacts throughout the value chain.
Education and experience: Reynir Jónsson has been the Group's CFO since late 2013. Before
joining the Group, he worked as a Director and Partner at Deloitte
Financial advisory services for five years, where large parts of his
projects were related to the seafood sector in Iceland. Prior to that,
Reynir was the head of accounting at HB Grandi from 2003-2006.
Reynir holds an MSc degree in Finance and Strategic Management
from Copenhagen Business School and a Cand.oceon Degree in
accounting from the University of Iceland.
Member of board or manangement Reynir is a board member of several of the Issuer's subsidiaries
Shareholdings in the Company as at 31.12.2021
and other interest related to large
shareholders, competitors, customers or
550,345 shares in addition to options for 10,000,000 shares
Iceland Seafood International hf. 53 Financial Statements 2021
Statement of Corporate Governance
CSR Policy
Environmental Policy
• We are committed to maintaining the highest standards of business conduct by using only legal and ethical means in
all business activity.
• We are fair, equitable and respectful to employees, associates, competitors, customers, the public and all business
or professional relationships.
• We treat all customers and suppliers honestly, fairly and objectively.
• We observe all applicable state, federal, foreign or international laws and regulations relating to the production,
sourcing, processing, labelling, handling, importing, distribution, promoting and selling of seafood products.
• We are committed to maintaining the Group’s financial books and business records with the highest degree of
accuracy, completeness and integrity.
The key environmental considerations for the Group have been defined in the Environmental Policy:
-Sustainable Fisheries
-Energy use
-Greenhouse gas emissions
-Water use
-Waste
The following key principles on Corporate Social Responsibility and Business Integrity have been set out and detailed
in the Company’s CSR Policy:
The Group’s key principles guiding our actions in this area include:
• The objective to source only from fisheries that are administrated in conformance with FAO Code of Conducts for
responsible fisheries and have proper fishery management systems,
• Supporting independent and credible standards that are set to audit and approve fisheries that are well managed
and will wherever possible promote these fisheries to its customers,
• Commitment to working with industry on fishery improvements and best practises,
• Help and support customers to make the right choice to source sustainable seafood,
• Commitment to supply sustainable seafood to its customers.
• Educate customers, suppliers, employees and other key stakeholders about environmentally responsible seafood.
• Participate in work with official and industry bodies to achieve our policy.
Iceland Seafood annually publish a Corporate Social Responsibility report, which is based on the non-financial
guidelines for Environmental, Social and Corporate Governance (ESG) disclosures issued by Nasdaq’s Nordic and Baltic
stock exchanges.
Iceland Seafood International hf. 54 Financial Statements 2021
Statement of Corporate Governance
Iceland Seafood’s corporate governance rules
1.
2.
3.
4.
5.
6.
7.
8.
9.
Reykjavík, 22 February 2022.
Board of Directors
The sub-committee’s rules of procedure.
The Company’s annual accounts and the report of the Board of Directors.
The Company’s remuneration policy.
The Company’s corporate governance statement.
The Company has specifically reserved a section of its website for corporate governance information on
www.icelandseafood.com/investors. The below information and documents are available on the website:
The Company’s Articles of Association.
The Board’s rules of procedure.
Information on the Company’s shareholders’ meetings, including time and location, information on
candidates to the Board, and the agenda of the meeting, together with the date of issue of the annual
accounts and interim financial statements.
Meeting notices, minutes of shareholders’ meetings and documents presented at the meeting. It is not
necessary to publish a list of the shareholders and proxies that have attended meetings.
Summarised information on the Company’s Board of Directors, CEO, auditors and members of sub-
committees.
Iceland Seafood International hf. 55 Financial Statements 2021