Finance

See all articles

Fast-growing Norwegian seafood group Insula hits speed bumps

The company went through several structural changes over the year.

The holding company for Kverva-owned Insula saw earnings for its investment sink into the red in 2018, driven by a restructuring process and several acquisitions during the year.

The results published by the company correspond to the umbrella group Insula, and do not include consolidated numbers for the groups held by it.

Operating results for the year ended up at a loss of NOK 16.6 million (€1.7 million/$1.8 million), down from a profit of NOK 1.6 million (€159,493/$178,064) the year earlier.

Sales, on the other hand, increased 65 percent over the period, to a total NOK 52.9 million (€5.3 million/$5.9 million).

Net results fell from a profit of NOK 33.9 million (€3.4 million/$3.8 million) in 2017 to a loss of NOK 35.3 million (€3.5 million/$3.9 million) last year.

In 2018, the company acquired a minority stake in Danish processor Amanda Seafood, full ownership of Norwegian Knud Sondergaard Fiskeeksport, and also the totality of the shares of Danish company Hanstholm.

In addition, the company divested some of its businesses including Salten Fiskeindustrier at the end of the year and transferred its MazMat operation to Cibus Drift and Insula Producktion.

During the year, the company's operations were also impacted by higher prices of raw material, which affected sales volumes.

Holding parent Kverva, owned by Norwegian millionaire Gustav Witzoe and owner of salmon giant SalMar, recently tucked into London-listed aquaculture biotechnology company Benchmark acquiring 11.47 percent of its shares.

This week, Benchmark saw its market capitalization slump following a trading update in which the company notified investors that it was lowering its full year profit expectations.

Other seafood-related groups under Kverva's ownership are technology firm Steinsvik, and fishing giant Pelagia, of which Kverva owns a stake of 36.7 percent.

Latest news
Most read