The last financial statement issued by Icelandic Group Plc indicated that the company is still in choppy waters. The group, which owns Seachill and Coldwater Seafoods in the UK, has been adversely affected by difficult trading conditions this year.
The financial report covers a period of nine months ending on September 30th, 2007. During that time, the company’s worldwide sales dropped by more than five percent. The third quarter of the year (from July to September) was the worst, with sales dropping by 11 per cent. Total losses in that time were €2.5 million.
Icelandic Group has introduced several changes to their operations this year including massive restructuring in Europe, Britain and the United States.
Björgolfur Johannsson, the company’s chief executive said: “Our plans assumed that the streamlining measures that have been in progress since July 2006 would result in an improved financial statement this year. This has not materialised, and there are various reasons that we are still at work on the process.”
Johannsson was optimistic that changes made this year would bear fruit in next year’s financial statements and he was keen to focus on positive gains made by the company.
“Icelandic’s operations are proceeding at a good pace in many areas, and numerous units are showing good margins,” he said. “We are now completing the sale of units which have been showing insufficient margins, as part of the streamlining process has consisted in off loading units that have not been performing up to expectations and strengthening units that have.”
Jóhannsson pointed out that the sales of seafood in Spain and Asia were above target, although bad weather over the summer months in Britain affected sales there and demand fell in the United States. In addition, the company fears that fish prices are rising, which will affect the company’s performance in the last quarter of the year.