Iceland Seafood International : 2025 Financial Statements Consolidated

About this update from Iceland Seafood International Hf

Iceland Seafood International hf. Consolidated Financial Statements for the year ending 31 December 2025 Iceland Seafood International hf. Köllunarklettsvegur 2 104 Reykjavík Iceland TIN 611088-1329 Contents Page Statement and Endorsement by the Board of Directors and the CEO .............................................................. 2-6 Independent Auditor's Report of the Consolidated Financial Statements ....................................................... 7-10 Consolidated Statement of Profit or Loss .......................................................................................................... 11 Consolidated Statement of Comprehensive Income ......................................................................................... 12 Consolidated Statement of Financial Position ................................................................................................... 13 Consolidated Statement of Changes in Equity ................................................................................................... 14 Consolidated Statement of Cash Flows ............................................................................................................. 15 Notes to the Consolidated Financial Statements .............................................................................................. 16-44 Appendices (unaudited) Quarterly Statements ......................................................................................................................................... 45 Corporate Governance Statement ..................................................................................................................... 46-52 Non-financial information .................................................................................................................................. 53-65 Company Information Name Iceland Seafood International hf. TIN 611088-1329 BOD Birna Einarsdóttir, Chairman Bergþór Baldvinsson, Board Member Halldór Leifsson, Board Member Ingunn Agnes Kro, Board Member Jakob Valgeir Flosason, Board Member CEO Ægir Páll Friðbertsson Address Köllunarklettsvegur 2 104 Reykjavík Iceland Web https://www.icelandseafood.com Auditors Deloitte ehf. Dalvegur 30 201 Kópavogur Iceland https://www.deloitte.is Reporting currency Euro (EUR) Statement 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 2025. Furthermore, in our opinion the Consolidated Financial Statements and the Statement and Endorsement of the Board of Directors and the CEO give a fair view of the development and performance of the Group's operations and its position and describe the principal risks and uncertainties faced by the Group. 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 Iceland Seafood International hf ("the Company") is a holding company for a Group of subsidiaries in Europe and South America. The Company is a one of the leading suppliers of North-Atlantic seafood, a global value-added seafood producer, and a sales and marketing company. The Group is headquartered in Iceland and has subsidiaries in Spain, Argentina, Ireland, Iceland, France, Germany and the United Kingdom. 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 and a freezer-trawler operation in Argentina. Changes in Financial Statement Presentation Effective from Q1 2025, we have revised the format of our financial statements to present both current quarter and year-to-date (YTD) results within each quarterly, bi-annual, and annual report. As part of this change, we have discontinued the use of separate columns for Normalised results and significant items in the YTD sections of quarterly reports and for the prior year. Operations for the year Inflation decreased across the EU in 2025 while rising slightly in the UK and the US, and interest rates fell in several major markets. Together, these shifts have resulted in moderate to positive effects on consumer purchasing power in 2025. Total sales from continuing operations reached EUR 484.3 million, marking a 9% increase compared to the previous year. This growth over the year was primarily driven by high cod prices and strong demand for whitefish. The fourth quarter performed notably well, in line with expected seasonal patterns, with sales increasing by 5.8% compared to the same quarter in 2024. Christmas-season sales were strong in the Irish and Spanish subsidiaries, together with a robust performance in frozen and fresh products from the Sales and Distribution Division. The year was marked by rising prices for cod and related species, as well as for mackerel, while herring prices remained relatively stable and capelin was scarce due to very low quotas issued for 2025. In contrast, salmon prices were substantially lower than projected, which contributed to a very strong year across all Company divisions. Despite the limited capelin availability, reducing volumes compared to previous years, a shift toward a higher - value product mix supported performance and contributed to an overall sales growth. Normalised profit before tax reached EUR 10.6 million, an increase of EUR 3.2 million compared to the previous year. The profit for 2025 amounted to EUR 7.4 million, a significant improvement from the EUR 2.8 million profit in 2024. Lower salmon prices benefited our VA N-Europe operations, even as elevated whitefish prices presented challenges. Ahumados Dominguez in Spain, which relies heavily on salmon, delivered a healthy profit for the second consecutive year. Additionally, rising sales prices throughout the year supported margin improvements, particularly within the VA S-Europe division. The S&D division also performed strongly, driven by solid demand for Icelandic products. Our freezing trawler operation in Argentina, which commenced in the fall of 2025, shows promising potential, enabling us to expand further into the value chain and offer premium wild - caught shrimp, thereby broadening our product portfolio. In 2025 Iceland Seafood International hf. successfully completed its refinancing process. Credit facilities with an Icelandic bank were renewed, and both the credit line and loan previously held with a foreign financial institution were refinanced through the same Icelandic bank. On April 7, the Group completed an unsecured bond issuance, raising ISK 4,000 million (equivalent to EUR 27.6 million via currency swap) with a 3.5-year maturity. Additionally, the Company conducted three short-term bill offerings in October and December 2025, raising ISK 2,660 million (EUR 16.8 million via currency swap) with 6 month maturities. This refinancing reduced interest expenses from the June 2025 maturity date and will do so onward. The Group remains focused on further lowering financing costs through continued financial optimization initiatives. Further information in note nr 21. The Consolidated Statement of Financial Position at year-end 2025 shows total assets of EUR 279.4 million or EUR 25.5 million increase from the prior year. The increase in total assets is mainly due to higher inventories value, higher cash position and purchase of freezing trawlers and fishing rights. Net debt at end of December of EUR 111.4 million was EUR 6.8 million higher than at year end 2024 on a like for like basis. Increase in debts is mainly driven by high inventories at year end and investments in the freezing trawlers in Argentina. Total equity, including non-controlling interests amounted to EUR 82.4 million compared to EUR 76.2 million at end of December 2024. The equity ratio was 29.5% at year end compared to 30.0% at end of 2024. Full time employees in continuing operations on average for the year were 797 (2024: 767), with 802 at year end (2024: 788). Acquisition of Cigalfer792 S.R.L. On December 20th, 2024, Iceland Seafood Iberica S.A.U. in Spain, a subsidiary of Iceland Seafood, and Achernar S.A., an Argentinian subsidiary of Iberica, signed an agreement to purchase all the issued share capital of Cigalfer792 S.R.L. in Argentina, effective from January 1st, 2025. Cigalfer792 S.R.L. operates a cold storage facility and is located near Achernar S.A. The consideration for the share capital was USD 3,350,000. Cigalfer792 S.R.L. was treated as asset acquisition at 2024 year-end, and included in the Group´s financial statement from the beginning of 2025. Cigalfer792 S.R.L. will enhance the current operation, leading to immediate cost reductions in Achernar operations. It will also contribute to an overall decrease in storage costs within the IS Iberica Group, improving inventory management and reducing inventory-related expenses. Thorpesca S.A.S. On July 18th, 2025, THORPESCA S.A.S., a new Argentinian subsidiary of Iceland Seafood Ibérica S.A.U., signed an agreement to acquire two freezer trawlers along with associated fishing licenses and historical fishing rights from FOOD ARTS S.A. The purchase price amounts to USD 6.0 million. USD 1.2 million for the vessels and USD 4.8 million for the fishing rights. Iceland Seafood Barraclough Ltd. Espersen A/S's subsidiary, Espersen UK, has withdrawn from its operations in Grimsby and confirmed that it will not exercise its purchase option at the end of the four - year lease period in September 2027. The company has also approved the early sale of the property. Market capitalization The Company is listed on the Nasdaq main market in Iceland (ticker: ICESEA). The latest transaction in 2025 was at ISK 4.86 per share, giving the Company a market capitalization of EUR 101.5 million (2024: EUR 107.9 million) or 6% decrease from year end 2024. Shareholders The total number of shareholders at year end was 664 (2024: 745). The ten largest are (shares are in millions): 31.12.2025 31.12.2024 FISK Seafood ehf ......................................................................................... 455 15% 363 12% Brim hf ........................................................................................................ 350 11% 350 11% Jakob Valgeir ehf ......................................................................................... 345 11% 345 11% Nesfiskur ehf ............................................................................................... 322 11% 322 11% Birta lífeyrissjóður ....................................................................................... 194 6% 178 6% Lífsverk lífeyrissjóður .................................................................................. 178 6% 164 5% Stapi lífeyrissjóður ....................................................................................... 159 5% 159 5% Lífeyrissjóður starfsmanna ríkisins A-deild .................................................. 106 3% 122 4% Sjóvá-Almennar tryggingar hf. .................................................................... 93 3% 93 3% VÍS tryggingar hf. ......................................................................................... 87 3% 87 3% 2.289 74% 2.183 71% Other shareholders (2025: 654 and 2024: 735) .......................................... 775 26% 881 29% 3.064 100% 3.064 100% 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 2025 were 15.8 million shares (2024: 15.8 million shares). At end of the year 15.8 million shares are exercisable. All granted options are vested. Further information on stock options is disclosed in note 20.4. The Board of Directors will propose to the Annual General Meeting that no dividend will be paid to shareholders in 2026. For an overview of changes in equity, see the Consolidated Statement of Changes in Equity. Corporate Governance 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 Commerce, 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. Furthermore the Senior Executive Management consists of a male and a female, and the Company´s gender ratio is 51% males, 49% females. Further information is provided in the Corporate Governance Statement which is an appendix to these Financial Statements. Non-financial information 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. The European Union has introduced the European Green Deal which consists of series of major proposals, important commitments and detailed roadmap with the goal of Europe to become the world's first climate-neutral continent by 2050. One aspect for the financial part of the European Green Deal is the Taxonomy Regulation 2020/852/EU, which took effect in Iceland in June 2023 with act. no. 25/2023. The Company has gone through a detailed assessment to understand the extent of the regulation for its operation and has evaluated the eligibility and alignment against the climate and environmental objectives. The results are reported in detail in the chapter Non-Financial Disclosure. The Company's policies, material issues and focus areas are disclosed in the Non-Financial Information appendices to these Consolidated Financial Statements. Endorsement The Board of Directors and the CEO of Iceland Seafood International hf. hereby confirm the Consolidated Financial Statements of the Company for the year 2025 with their signatures. Reykjavík, 26 February 2026 Birna Einarsdóttir Bergþór Baldvinsson Chairman of the Board Board Member Halldór Leifsson Ingunn Agnes Kro Board Member Board Member Jakob Valgeir Flosason Ægir Páll Friðbertsson Board Member Chief Executive Officer To the Board of Directors and shareholders of Iceland Seafood International hf. Opinion We have audited the Consolidated Financial Statements of Iceland Seafood International hf. for the year ended 31 December 2025 which comprise the Consolidated Statement of Profit or Loss, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, 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 2025 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. Basis for opinion 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 consolidated 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 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. Valuation of goodwill How our audit addressed the key audit matter Book value of goodwill at year-end amount to EUR 56.2 million (2024: 56.2 million). 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, 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. 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. 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. Other information Considering the projected future cash flows, understanding variances between the forecast and actual results for the year ended 31 December 2025 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 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 We also reviewed the disclosures presented in note 11 to the Consolidated Financial Statements to confirm compliance with the requirements within IAS 36. 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. Responsibilities of the Board of Directors and the CEO for 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. The board of directors and the audit committee shall supervise the preparation and presentation of the Consolidated financial statements. Auditor's responsibilities for the audit of the Consolidated Financial Statements 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. 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. 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 has confirmed in writing to the Audit Committee that we are independent of Iceland Seafood International Report on other legal and regulatory requirements Report on European single electronic format (ESEF Regulation) As part of our audit of the consolidated financial statements of Iceland Seafood International hf. we performed procedures to be able to issue an opinion on whether the consolidated financial statements of Iceland Seafood International hf. for the year 2025 with the file name "254900CJS0OI5B8GO668-2025-12-31-0-en.zip" is prepared, in all material respects, in compliance with laws no. 20/2021 disclosure obligation of issuers of securities and the obligation to flag relating torequirements regarding European single electronic format regulation EU 2019/815 which include requirements related to the preparation of the consolidated financial statements in XHTML format and iXBRL markup. Management is responsible for preparing the consolidated financial statements in compliance with laws no. 20/2021 disclosure obligation of issuers of securities and the obligation to flag. This responsibility includes preparing the consolidated financial statements in a XHTML format in accordance to EU regulation 2019/815 on the European single electronic format (ESEF regulation). Our responsibility is to obtain reasonable assurance, based on evidence that we have obtained, on whether the consolidated financial statements is prepared in all material respects, in compliance with the ESEF Regulation, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor's judgement, including the assessment of the risks of material departures from the requirement set out in the ESEF regulation, whether due to fraud or error. In our opinion, the consolidated financial statements for the year ended 31.12.2025, with the file name "254900CJS0OI5B8GO668-2025-12-31-0-en.zip", has been prepared, in all material respects, in compliance with the ESEF Regulation. Deloitte was appointed auditor of Iceland Seafood International hf. by the Annual General Meeting of shareholders on 26 March 2025. Deloitte have been elected since the Annual General Meeting 1999. Kópavogur, 26 February 2026 Deloitte ehf. Heiðar Þór Karlsson State Authorised Public Accountant Note 2025 2024 2025 2024 1.10. - 31.12. 1.10. - 31.12. 1.1. - 31.12. 1.1. - 31.12. Gross profit Sales of seafood 2 Cost of sales 15 136.707 (114.053) 129.165 (107.283) 484.273 (410.948) 443.179 (375.899) Operating expenses Operating expenses ............................................................ 22.654 (13.832) 21.882 (12.518) 73.325 (50.532) 67.280 (48.565) Operating profit before interest and depreciation and amortisation (EBITDA) ................................................ 8.822 9.364 22.793 18.715 Change in fair value of investment property 9 119 (78) (87) (244) Depreciation and amortisation 10 (1.056) (647) (4.056) (4.070) Operating profit (EBIT) ................................................. 7.885 8.639 18.650 14.401 Net finance costs 5 (1.323) (1.522) (5.229) (6.408) Net exchange rate difference ............................................. (15) (2.174) (2.819) (552) Profit before exceptional items and taxes ..................... 6.547 4.943 10.602 7.441 Exceptional items 7 (60) (404) (633) (3.512) Profit before taxes ....................................................... 6.487 4.539 9.969 3.929 Income taxes 6 (1.669) (294) (2.614) (1.153) Profit for the period ..................................................... 4.818 4.245 7.355 2.776 Attributable to Owners of the Company ..................................................... Non-controlling interests ................................................... 4.597 221 4.096 149 7.087 268 2.654 122 Profit for the period ..................................................... 4.818 4.245 7.355 2.776 Earnings per share 8 Basic and diluted (EUR cents per share) ............................ 0,1500 0,1337 0,2313 0,0866 Profit for the period ....................................................................... Items that may be reclassified subsequently to profit or loss Net fair value of cash flow hedges ......................................................... Translation difference ............................................................................ Total comprehensive income .......................................................... Attributable to Owners of the Company ........................................................................ Non-controlling interests ....................................................................... Total comprehensive income .......................................................... 2025 2024 2025 2024 4.818 4.245 7.355 2.776 76 (48) 694 (1.141) 526 4.770 4.939 6.214 3.378 4.549 221 4.790 149 5.946 268 3.256 122 4.770 4.939 6.214 3.378 1.10. - 31.12.1.10. - 31.12. 1.1. - 31.12. 1.1. - 31.12. Assets Note 31.12.2025 31.12.2024 Non-current assets Property, plant and equipment ................................................................................. 10 35.559 34.723 Investment property .................................................................................................. 9 3.782 4.220 Leased assets ............................................................................................................. 23 1.954 1.389 Intangible assets ........................................................................................................ 11 61.001 56.577 Finance lease receivables .......................................................................................... 398 1.186 Deferred tax assets .................................................................................................... 6 1.848 2.518 Other long term assets .............................................................................................. 166 128 Total non-current assets 104.708 100.741 Current assets Inventories ................................................................................................................. 15 79.461 61.857 Finance lease receivables .......................................................................................... 493 228 Trade and other receivables ...................................................................................... 16 68.607 68.352 Other assets ............................................................................................................... 17 10.389 9.844 Cash and bank balances ............................................................................................. 18 15.727 12.900 Total current assets 174.677 153.181 Total assets 279.385 253.922 Equity and liabilities Capital and reserves Issued capital and share premium ............................................................................ 19 46.321 71.524 Translation reserve .................................................................................................... 20 (1.120) 21 Other reserves ........................................................................................................... 20 612 612 Retained earnings and unrealised profit from subsidiaries ...................................... 34.085 1.853 Equity attributable to owners of the Company 79.898 74.010 Non-controlling interests .......................................................................................... 2.475 2.207 Total equity 82.373 76.217 Non-current liabilities Borrowings ................................................................................................................. 21 35.590 7.881 Lease liabilities ........................................................................................................... 23 1.686 1.085 Retirement benefit and other obligations ................................................................ 2.711 1.140 Deferred tax liabilities ............................................................................................... 6 2.165 1.791 Total non-current liabilities 42.152 11.897 Current liabilities Borrowings ................................................................................................................. 21 91.574 109.630 Lease liabilities ........................................................................................................... 23 497 509 Trade and other payables .......................................................................................... 53.252 44.697 Other liabilities .......................................................................................................... 22 9.537 10.972 Total current liabilities 154.860 165.808 Total liabilities 197.012 177.705 Total equity and liabilities 279.385 253.922 Consolidated Statement of Changes in Equity for the year ended 31 December 2025 Restricted equity Share capital Share premium Translation reserve Hedging reserve Statutory reserve Equity reserve Unrealised profit of subsidiaries Retained earnings Attributable to owners of the Company Non -controlling interests Total equity Balances at 1 January 2024 27.456 44.084 (505) (641) 430 181 21.657 (21.657) 71.005 1.726 72.731 Profit (loss) for the year ........................................ 8.990 (6.336) 2.654 122 2.776 Net fair value gain on cash flow hedges ................ 76 76 76 Translation of shares held in foreign currencies ... 526 526 526 Total comprehensive income ................................ 526 76 8.990 (6.336) 3.256 122 3.378 Issue of share capital ............................................ Transfer of cash flow hedge upon derecognition of financial liabilities ........................................... 565 (565) 0 0 360 360 0 Dividend declared from subsidiaries to parent ..... (4.500) 4.500 Other adjustments ................................................ (16) 1 (236) (251) (1) (252) Balances at 31 December 2024 27.456 44.068 21 0 430 182 26.147 (24.294) 74.010 2.207 76.217 Profit (loss) for the year ........................................ 10.342 (3.255) 7.087 268 7.355 Translation of shares held in foreign currencies ... (1.141) (1.141) (1.141) Total comprehensive income ................................ (1.141) 10.342 (3.255) 5.946 268 6.214 Transfer of share premium to accumulated loss ... (25.203) 25.203 0 0 Dividend declared from subsidiaries to parent ..... (5.500) 5.500 0 0 Other adjustments ................................................ (58) (58) (58) Balances at 31 December 2025 27.456 18.865 (1.120) 0 430 182 30.989 3.096 79.898 2.475 82.373 Iceland Seafood International hf. 14 Amounts in EUR thousands Financial Statements 2025 - Audited Consolidated Statement of Cash Flows for the year ended 31 December 2025 Note 2025 2024 Operating activities Operating profit ................................................................................................. Change in fair value of investment property .................................................... 9 Depreciation and amortisation ......................................................................... 10 Gain on disposal of property, plant and equipment ......................................... Change in obligations and other calculated liabilities ...................................... Working capital generated from operations (Increase) decrease in inventories .................................................................... (Increase) decrease in receivables and other assets ......................................... Increase (decrease) in payables and other liabilities ........................................ Cash generated from operations before interests and taxes Interest received ............................................................................................... Interest paid ...................................................................................................... Income taxes paid ............................................................................................. Net cash generated from operating activities Investing activities Payments for investment property ................................................................... 9 Payments for property, plant and equipment .................................................. 10 Payments for intangible assets ......................................................................... 11 Proceeds from disposal of non-current assets .................................................. Net cash outflow on acquisition of subsidiaries ............................................... 13 Net cash used in investing activities Net cash before financing activities Financing activities Net proceeds from revolving credit facility ...................................................... 21 Net proceeds from (repayment of) bills ............................................................ 21 Net proceeds from borrowings on new term loan ........................................... 21 Net repayment of other borrowings ................................................................. 21 Proceeds from issue of share capital, net of issue costs ................................... Net cash generated by financing activities Net increase (decrease) in cash and bank balances .......................................... Cash and bank balances at the beginning of the year ...................................... Effect of exchange rate changes on cash held in foreign currencies ................ Cash and bank balances at the end of the year 18 18.630 12.752 87 1.190 4.056 4.070 (42) (91) 2.652 (668) 25.383 17.253 (17.604) 15.132 (315) (10.733) 7.965 (9.139) 15.429 12.513 1.003 1.405 (6.845) (9.676) (2.604) (1.871) 6.983 2.371 (3.627) (5.563) (4.469) (4.440) (197) 83 135 (809) (695) (10.729) (8.853) (3.746) (6.482) 9.784 8.889 1.281 (1.458) 12.927 3.667 (13.884) (9.889) 360 10.108 1.569 6.362 (4.913) 12.900 16.524 (3.535) 1.289 15.727 12.900 General information 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). 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. Segment information Products and services from which reportable segments derive their revenues Information is reported to the Board of Directors and key management on the operating segment level. The reportable segments in 2025 were: Value added Southern Europe Processing and sale of seafood in Southern Europe. Value added Northern Europe Processing and sale of seafood in Ireland. Also includes UK as discont. operations. Sales & Distribution Distribution of seafood to a global network of customers. Other Head office and discontinued operations. Segment revenue, results, assets and liabilities For the year 2025 Value added S-Europe Value added N-Europe Sales & Distribution Other and Eliminations Consolidated Revenue: Sales of seafood ............................ 241.934 67.154 228.420 455 537.963 Eliminations .................................. (28.994) (3.896) (6.929) (13.871) (53.690) 212.940 63.258 221.491 (13.416) 484.273 Operating results: Operating profit (loss) ................... 12.482 2.461 4.440 (733) 18.650 Net finance costs and exchange rate difference ............ (4.234) (60) (12) (3.742) (8.048) Normalised PBT ........................... 8.248 2.401 4.428 (4.475) 10.602 Exceptional costs ........................... (30) (603) (633) Profit (loss) before taxes ............. 8.218 2.401 4.428 (5.078) 9.969 Income tax .................................... (2.205) (319) (841) 751 (2.614) Profit (loss) for the period ........... 6.013 2.082 3.587 (4.327) 7.355 Assets ............................................ 160.173 29.413 35.192 54.607 279.385 Liabilities ....................................... 102.766 10.022 25.607 58.617 197.012 Iceland Seafood Barraclough in UK is now presented under Other and Eliminations instead of Value Added N-Europe division. Comparative figures in 2024 have been restated accordingly. For the year 2024 Value added S-Europe Value added N-Europe Sales & Distribution Other and Eliminations Consolidated Revenue: Sales of seafood ............................ 230.607 63.521 187.180 460 481.768 Eliminations .................................. (15.205) (6.702) (6.154) (10.528) (38.589) 215.402 56.819 181.026 (10.068) 443.179 Operating results: Operating profit (loss) ................... 8.725 2.763 3.668 (755) 14.401 Net finance costs and exchange rate difference ............ (2.892) (248) 189 (4.009) (6.960) Normalised PBT ........................... 5.833 2.515 3.857 (4.764) 7.441 Exceptional costs ........................... 0 0 (298) (3.214) (3.512) Profit (loss) before taxes ............. 5.833 2.515 3.559 (7.978) 3.929 Income tax .................................... (728) (332) (793) 700 (1.153) Profit (loss) for the period ........... 5.105 2.183 2.766 (7.278) 2.776 Assets ............................................ 137.819 29.324 31.711 55.068 253.922 Liabilities ....................................... 85.101 12.094 21.213 59.297 177.705 Salaries Salaries and related expenses: 2025 2024 Salaries ........................................................................................................................... 27.933 26.506 Pension related expenses .............................................................................................. 4.444 4.071 Other salary related expenses ....................................................................................... 1.118 918 33.495 31.495 Classified by operational category: 2025 2024 Cost of sales ................................................................................................................... 20.298 18.836 Operating expenses ....................................................................................................... 13.197 12.659 33.495 31.495 Full time employees on average for the year from continuing operations ................... 797 767 Full time employees at end of the year from continuing operations ............................ 802 788 Fee to auditors 2025 2024 Audit of the Consolidated Financial Statements ............................................................ 382 374 Other services ................................................................................................................ 21 59 403 433 5. Net finance costs 2025 2024 Investment income: Interest income on bank accounts ................................................................................. 413 733 Interest income on trade receivables ............................................................................ 590 672 Total investment income ............................................................................................... 1.003 1.405 Finance costs: Interest expenses on borrowings ................................................................................... (6.011) (7.381) Interest expenses on obligations under leases .............................................................. (83) (80) Other interest expenses ................................................................................................. (138) (352) Total finance costs ......................................................................................................... (6.232) (7.813) Net finance costs ............................................................................................................ (5.229) (6.408) Income tax 6.1 Income tax recognised in profit or loss 2025 2024 Current tax expense ....................................................................................................... (1.570) (1.909) Deferred tax expense ..................................................................................................... (1.044) 756 (2.614) (1.153) The income tax expense for the year can be reconciled to the accounting profit as follows: 2025 2024 Profit before tax after exceptional items ....................................................................... 9.969 3.929 Income tax expense calculated at 20% (2024: 21%)(the Company's rate in Iceland) .... (1.994) (825) Effect of different tax rates of subsidiaries operating in other jurisdictions .................. (290) (100) Effect of items that are not deductible/taxable in determining taxable profit .............. (115) (1.308) Effect of unused tax losses and tax offsets not recognised as def. tax assets ............... (145) (1.184) Effect of exchange rate difference on deferred tax ....................................................... (72) 2.351 Others ............................................................................................................................ 2 (87) Income tax expense recognised in profit or loss ............................................................ (2.614) (1.153) Effective tax rate ............................................................................................................ 26% 29% 6.2 Current tax balances 31.12.2025 31.12.2024 Income tax payable ........................................................................................................ 1.202 1.087 6.3 Deferred tax balances 31.12.2025 31.12.2024 Deferred tax assets ........................................................................................................ 1.848 2.518 Deferred tax liabilities .................................................................................................... (2.165) (1.791) (317) 727 Deferred tax assets / (liabilities) have changed as follows: Deferred tax Deferred tax assets liabilities Total At 1 January 2024 ................................................................................ 2.461 (2.490) (29) Calculated tax for the year .................................................................. (766) (387) (1.153) Income tax payable for the period ...................................................... 823 1.086 1.909 At 31 December 2024 ......................................................................... 2.518 (1.791) 727 Calculated tax for the year .................................................................. (1.199) (1.415) (2.614) Income tax payable for the period ...................................................... 529 1.041 1.570 At 31 December 2025 ......................................................................... 1.848 (2.165) (317) Deferred tax assets / (liabilities) are in relation to: 31.12.2025 31.12.2024 Property, plant and equipment ..................................................................................... (161) (1.250) Intangible assets ............................................................................................................. (1.263) (1.226) Inventories ..................................................................................................................... (51) (12) Trade and other receivables .......................................................................................... (160) 1.656 Deferred revenue ........................................................................................................... (250) (252) Deferred exchange rate difference ................................................................................ (1) (16) Deferred tax loss ............................................................................................................ 1.587 1.568 Other items .................................................................................................................... (18) 259 (317) 727 6.4. Unused tax losses Most of the unused tax losses will expire in the years 2026-2035, although some subsidiaries have unused tax losses that do not expire. Unused tax losses at the amount of EUR 23.1 million is not recognised as deferred tax assets. Unused tax losses at the amount of EUR 16.2 million will not expire and unused tax losses at the amount of EUR 6.7 million will expire in the years 2029-2035. Management has concluded that there will be sufficient taxable profit in the future to use the tax loss currently carried forward. The recognition of the deferred tax is based on the Group´s forecast whereby there will be sufficient taxable profits to fully utilize current taxable losses. Significant items In 2025 the Group incurred costs associated with the following: Interest cost of bond ICESEA 25 06 related to the sale of Iceland Seafood UK, EUR 0.6 million. In 2024 the Group incurred costs associated with the following: Interest cost of bond ICESEA 25 06 related to the sale of Iceland Seafood UK, EUR 1.7 million. Group management changes EUR 0.4 million. Exceptional costs, net of income tax: 2025 2024 Exceptional costs ............................................................................................................ (633) (2.154) Income tax ..................................................................................................................... 63 Costs due to discontinued operations ........................................................................... (1.358) Exceptional costs, net of income tax .............................................................................. (633) (3.449) Earnings per share 2025 2024 Profit attributable to owners of the Company ............................................................... 7.087 2.654 Weighted average number of ordinary shares (in ISK thous.) for basic EPS .................. 3.064.480 3.064.480 Costs related to the sale of UK operation EUR 1.4 million. The Company has no agreements with dilutive effects. Basic and diluted earnings per share (EUR cents per share) Basic and diluted earnings per share ............................................................................. 0,2313 0,0866 Investment property 2025 2024 At 1 January ................................................................................................................... 4.220 1.663 Prior year adjustment .................................................................................................... Additions ........................................................................................................................ (144) 3.627 Fair value adjustments ................................................................................................... (87) (1.190) Exchange rate differences .............................................................................................. (207) 120 At 31 December ............................................................................................................. 3.782 4.220 Investment properties held by the Group are a property in the UK that was used in the operation of Iceland Seafood UK Ltd., that was sold in 2023. In accordance with the agreement with the buyer of Iceland Seafood UK Ltd., the buyer and the Group entered into rental agreement of the property, where the lessee has a purchase option at end of the leasing period. Asset valuation at year end reflects the discounted valuation of rental payments under the rental agreement and the purchase price at the end of the leasing period. The lessee, Espersen A/S's subsidiary, Espersen UK, has withdrawn from its operations in Grimsby and confirmed that it will not exercise its purchase option at the end of the four - year lease period in September 2027. The company has also approved the early sale of the property. The Group reassessed the measurement basis for its investment property in Grimsby and fair value changes are recognised in profit or loss in accordance with IAS 40. Property, plant and equipment For the year 2025 Property and land Machinery and equipment Total Cost At 1 January ........................................................................................ 24.603 20.134 44.737 Additions ............................................................................................. 12 5.551 5.563 Eliminated on disposal ........................................................................ (280) (280) Fully depreciated assets ...................................................................... (215) (215) Exchange rate differences ................................................................... (775) (1.010) (1.785) At 31 December .................................................................................. 23.840 24.180 48.020 Depreciation At 1 January ........................................................................................ 3.895 6.119 10.014 Charge for the period .......................................................................... 530 2.831 3.361 Eliminated on disposal ........................................................................ (239) (239) Fully depreciated ................................................................................. (215) (215) Exchange rate differences ................................................................... (10) (450) (460) At 31 December .................................................................................. 4.415 8.046 12.461 At 31 December 2025 ......................................................................... 19.425 16.134 35.559 Property Machinery For the year 2024 and land and equipment Total Cost At 1 January ........................................................................................ 21.323 16.498 37.821 Acquired on acquisition of subsidiary ................................................. 3.200 3.200 Additions ............................................................................................. 38 4.431 4.469 Eliminated on disposal ........................................................................ (469) (469) Fully depreciated assets ...................................................................... (71) (906) (977) Exchange rate differences ................................................................... 113 580 693 At 31 December .................................................................................. 24.603 20.134 44.737 Depreciation At 1 January ........................................................................................ 3.339 4.357 7.696 Charge for the period .......................................................................... 619 2.806 3.425 Eliminated on disposal ........................................................................ (299) (299) Fully depreciated ................................................................................. (71) (906) (977) Exchange rate differences ................................................................... 8 161 169 At 31 December .................................................................................. 3.895 6.119 10.014 At 31 December 2024 ......................................................................... 20.708 14.015 34.723 Useful lives The following useful lives of property, plant and equipment are used in the calculation of amortisation. Property and land .................................................... 25-50 years Machinery and equipment ...................................... 3-20 years Property, plant and equipment pledged as security At year-end 2025, the Group had no property, plant and equipment pledged as security for its banking facilities. In the prior year, a property in the UK was pledged as security for banking facilities of the Group's UK operations. 10.3 Depreciation and amortisation expense 2025 2024 Depreciation of property, plant and equipment ............................................................ 3.361 3.425 Amortisation of intangible assets, note 11 .................................................................... 94 75 Depreciation of leased assets, note 23 .......................................................................... 601 570 4.056 4.070 10.4 Property, plant and equipment insurance value 31.12.2025 31.12.2024 Insurance value .............................................................................................................. 85.507 62.903 10.5 Fire in Achernar´s Operational Facilities On December 5th 2025, a fire occurred in the reception and office areas of Achernar's processing facility, a subsidiary of the Group located in Argentina. The fire was contained within the affected areas and did not spread to other parts of the facility, as firewalls prevented further damage. The incident did not affect inventory storage areas. Operations resumed within two weeks following the incident, and the facility has since been operating at full capacity. The property is insured, and the incident has been reported to the Group's insurance broker. As at the reporting date, the final financial impact of the incident has not yet been determined. Based on information currently available, management does not expect the fire to have a material impact on the Group's financial position, results of operations, or cash flows. Intangible assets Other intangible Fishing For the year 2025 Goodwill assets rights Total At 1 January .............................................................. 56.216 361 56.577 Additions .................................................................... 329 4.111 4.440 Charge for the period ................................................ (94) (94) Exchange rate differences ......................................... (18) 96 78 At 31 December ......................................................... 56.216 578 4.207 61.001 For the year 2024 Goodwill Other intangible assets Fishing rights Total At 1 January .............................................................. 56.216 231 56.447 Additions .................................................................... 197 197 Charge for the period ................................................ (75) (75) Exchange rate differences ......................................... 8 8 At 31 December ......................................................... 56.216 361 0 56.577 During the year, the Company purchased fishing rights for shrimp in Argentina. For further information, see note 14. The Company assessed the recoverable amount of goodwill and determined that none of the Company's cash-generating units have suffered an impairment loss. Allocation of goodwill to cash-generating units Goodwill has been allocated for impairment testing purposes to the following cash-generating units. 31.12.2025 31.12.2024 WACC % Book value WACC % Book value Iceland ...................................................................... 8,8% 4.072 8,4% 4.072 Spain ........................................................................ 8,1% 36.005 8,2% 36.005 France ...................................................................... 9,4% 1.127 8,9% 1.127 Ireland ...................................................................... 8,5% 15.012 8,8% 15.012 56.216 56.216 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 8.1-9.4% p.a. (2024: 8.2-8.9% 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. (2025: 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 90 bps would cause impairment of goodwill in S-Europe division. Subsidiaries and other investments At 31 December 2025, the Company directly owned nine subsidiaries that are all included in the consolidation. The direct subsidiaries in addition owned a further seven subsidiaries. The Company holds the majority of voting power in all of its subsidiaries. Place of Ownership Ownership Principal Name of company incorporation 31.12.2025 31.12.2024 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 - Cigalfer792 S.R.L. Argentina 100% 100% Real estate - Thorpesca S.A.S. A) Argentina 100% Fisheries Ahumados Dominguez Spain 85% 85% Sale of seafood Iceland Seafood Barraclough Ltd. UK 100% 100% Real estate 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% Not active A) In 2025 Iceland Seafood Ibérica S.A.U. founded the company Thorpesca S.A.S. in Argentina (see note 14). Subsidiaries pledged as security Equity of subsidiaries, except from subsidiaries in Spain, have been pledged for the Group's borrowings. Acquisition of subsidiary On December 20th, 2024, Iceland Seafood Iberica S.A.U. in Spain, a subsidiary of Iceland Seafood, and Achernar S.A., an Argentinian subsidiary of Iberica, signed an agreement to purchase all the issued share capital of Cigalfer792 S.R.L. in Argentina, effective from January 1st, 2025. Cigalfer792 S.R.L. operates a cold storage facility and is located near Achernar S.A. The consideration for the share capital was USD 3,350,000. Cigalfer792 S.R.L. was treated as asset acquisition with its balance becoming part of the Group´s financial statement at the beginning of 2025. The formal transfer of ownership and operational control of Cigalfer792 S.R.L. took place on January 1st, 2025. The impact of Cigalfer792 S.R.L. on the Group's sales in 2025 were USD 0.4 million and it generated profit of USD 0.1 million USD. In accordance with IFRS 3 Business Combinations, the purchase price of Cigalfer792 SRL was allocated pro-rata to the acquired assets and liabilities. No goodwill is recognised for asset acquisitions. The following table in USD summarizes the consideration paid for Cigalfer792 S.R.L. and the recognized amounts of assets acquired and liabilities assumed at the acquisition date, being the January 1st 2025. 1.1.2025 Property, plant and equipment ................................................................................................................. 4.377 Trade and other receivables ..................................................................................................................... 137 Cash and bank balances ............................................................................................................................ 8 Assets acquired 4.522 Deferred tax liabilities ............................................................................................................................... 1.004 Trade and other payables ......................................................................................................................... 168 Liabilities assumed 1.172 Total net identified assets ......................................................................................................................... 3.350 Consideration paid in cash in 2024 ........................................................................................................... 750 Consideration paid in cash in 2025 ........................................................................................................... 920 Deferred payments ................................................................................................................................... 1.680 3.350 Net cash outflow in 2025 in USD relating to acquisition of Cigalfer792 S.R.L.: 2025 Consideration paid in cash during the year 2025 ...................................................................................... 920 Less: cash and cash equivalent balances acquired .................................................................................... (8) 912 Formation of Thorpesca S.A.S. and subsequent acquisition of vessels and fishing rights On July 18th 2025, THORPESCA S.A.S., a new Argentinian subsidiary of Iceland Seafood Ibérica S.A.U., signed an agreement to acquire two freezer trawlers along with associated fishing licenses and historical fishing rights from FOOD ARTS S.A. The purchase price amounts to USD 5.8 million. USD 1.2 million for the vessels and USD 4.8 million for the fishing rights. The transaction has been accounted for as an asset acquisition, as the assets acquired do not constitute a business under IFRS 3. The vessels are recognized as additions to property, plant and equipment and are depreciated on a straight-line basis. The historical fishing rights have an indefinite lifetime and are therefore not amortized. The recoverable amount is tested for impairment each year. The results of the impairment test is that there is no indication of impairment. The acquisition is aligned with the Group's long-term strategic objectives to strengthen operations in Argentina and to diversify the product offering of Argentinian shrimp. It provides Iceland Seafood Ibérica S.A.U. with direct access to high-quality sea-frozen shrimp and supports vertical integration within the Group's value chain. The acquired assets are expected to enhance raw material access for existing land-based operations and enable expansion into new premium markets for sea-frozen products. Thorpesca S.A.S. impact on the Group´s sales in 2025 were USD 1.3 million and it generated loss of USD 24 thousand. The remaining payments related to the acquisition amount to a total of USD 2.0 million, comprising USD 666 thousand due in 2026, USD 667 thousand due in 2027, and USD 667 thousand due in 2028. Inventories 31.12.2025 31.12.2024 Raw materials ................................................................................................................. 5.929 3.397 Finished goods ............................................................................................................... 69.920 55.082 Other inventories ........................................................................................................... 3.612 3.378 79.461 61.857 15.1 Recognised as an expense The cost of inventories recognised as an expense is: 2025 2024 Cost of sales ................................................................................................................... 410.948 375.899 15.2 Movement in write-downs to net realisable value 31.12.2025 31.12.2024 At 1 January ................................................................................................................... (759) (1.217) Write-downs of inventory to a net realisable value ....................................................... (2.718) (783) Reversal of such write-downs ........................................................................................ 3.003 1.241 At 31 December ............................................................................................................. (474) (759) 15.3 Inventories pledged as security Inventories, except from Inventories in IS Iberica Group and Ahumados Dominguez of EUR 66.7 million, have been pledged for the Group's borrowings. Trade and other receivables 31.12.2025 31.12.2024 Trade and other receivables .......................................................................................... 69.510 69.448 Allowance for doubtful accounts ................................................................................... (903) (1.096) 68.607 68.352 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. Trade receivables 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 83% of Group's receivables were credit insured. 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. 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 31.12.2025 Not past due <30 31 - 60 61 - 90 >90 Uninsured receivables Expected credit loss rate 1,8% 3,2% 10,0% 18,0% 100,0% Estimated total gross carrying amount at default 7.770 839 385 1 631 Expected credit loss (ECL) 140 27 38 0 631 Insured receivables Expected credit loss rate 1,0% 2,0% 8,0% 15,0% 100,0% Estimated total gross carrying 48.654 10.357 596 94 184 amount at default Expected credit loss (ECL) 37 14 3 1 12 Total expected credit loss ......................................................................................................................... 903 Trade receivables - days past due 31.12.2024 Not past due <30 31 - 60 61 - 90 >90 Uninsured receivables Expected credit loss rate 1,9% 2,5% 10,0% 18,0% 100,0% Estimated total gross carrying amount at default 6.922 1.858 315 7 817 Expected credit loss (ECL) 132 46 32 2 817 Insured receivables Expected credit loss rate 1,0% 2,0% 8,0% 15,0% 100,0% Estimated total gross carrying 50.529 8.301 478 87 133 amount at default Expected credit loss (ECL) 39 12 3 1 12 Total expected credit loss ......................................................................................................................... 1.096 Movement in the allowance for doubtful debts 2025 2024 At 1 January ................................................................................................................... (1.096) (921) Change in impairment estimate ..................................................................................... 116 (500) Amounts written off as uncollectible ............................................................................. 0 189 Amounts recovered ........................................................................................................ 72 139 Exchange rate difference ............................................................................................... 5 (3) At 31 December ............................................................................................................. (903) (1.096) Receivables pledged as security Trade receivables, except from receivables in IS Iberica Group and Ahumados Dominguez, have been pledged for the Group's borrowings. Other assets 31.12.2025 31.12.2024 Prepaid expenses ........................................................................................................... 5.298 4.576 Value added and capital gain taxes ................................................................................ 4.030 3.536 Fair value of cash flow hedges ....................................................................................... 1.061 1.732 10.389 9.844 Cash and bank balances Cash and bank balances consist of cash and bank accounts. Cash amounts are insignificant. 19. Issued capital and share premium 19.1 Shares Authorized shares Issued shares Outstanding shares Book value At 1 January 2024 .................................................... 3.064.480 3.064.480 3.064.480 27.456 At 31 December 2024 .............................................. 3.064.480 3.064.480 3.064.480 27.456 At 31 December 2025 .............................................. 3.064.480 3.064.480 3.064.480 27.456 Fully paid shares, which have a par value of ISK 1, carry one vote per share and carry right to dividends. 19.2 Issued capital and share premium Share capital Share premium Total At 1 January 2024 ................................................................................ 27.456 44.084 71.540 Treasury shares purchased ................................................................. (16) (16) At 31 December 2024 ......................................................................... 27.456 44.068 71.524 Transfer of share premium to accumulated loss ................................ (25.203) (25.203) At 31 December 2025 ......................................................................... 27.456 18.865 46.321 Reserves 31.12.2025 31.12.2024 Translation reserve ........................................................................................................ (1.120) 21 Statutory reserve ........................................................................................................... 430 430 Equity reserve ................................................................................................................ 182 182 Unrealised profit of subsidiaries .................................................................................... 30.989 26.147 30.481 26.780 Translation 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. Hedging reserve 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. Statutory reserve 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. Equity reserve The equity-settled employee benefits reserve relates to share options granted by the Company to its employees under its employee share option plan. At 31 December 2025, executives and senior employees held options to buy 15.775.000 shares in the Company, no new share options were granted during the year. Weighted average lifetime of outstanding options at year end was 3.7 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 2025 no shares options were exercised. During the year no options were expensed as they were fully expensed in year end 2024 (2024:1 thousands). Average exercise price per share Stock options (thousands) At 1 January 2025 ........................................................................................................... 9,36 15.775 At 31.12.2025 ................................................................................................................. 9,36 15.775 Exercisable stock options at 31.12.2025 ........................................................................ 15.775 At 1 January 2024 ........................................................................................................... 8,78 25.775 Cancelled ........................................................................................................................ 7,90 (10.000) At 31.12.2024 ................................................................................................................. 9,36 15.775 Exercisable stock options at 31.12.2024 ........................................................................ 15.775 Assumptions used in the Black-Scholes calculation: Expected risk Remaining Expected term free interest Estimated lifetime in Year option granted Exercise price (years) rate volatility years 2015 .............................................. 5,40 4 0,31% 3,70% 0,4 2019 .............................................. 9,55 4 0,00% 14,10% 3,7 2020 .............................................. 10,23 4 0,00% 19,29% 5,0 Unrealised profit of subsidiaries 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.

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