Iceland fishing and processing profits fall in 2024 as net profit declines and fishmeal sector records sharp downturn
Overall Profitability Declines Across Key Fishing Sectors
Profitability across Iceland’s fishing and fish processing industry declined in 2024, according to new figures compiled by Statistics Iceland.
The data, based on operating accounts, balance sheets, export figures and catch data, shows that net profit across the combined fishing and processing sectors fell compared to 2023, dropping from 25% to 16% when adjusted for exchange rate effects using an annuity approach and a 6% rate of return.
The analysis covers key segments of the industry, including pelagic vessels, wet fish trawlers, freezing trawlers and multiple processing categories such as demersal, pelagic and fresh fish operations.
Mixed Performance Between Fishing and Processing Segments
Within the demersal sector, overall profitability improved, with net profit rising from 19.2% of revenue in 2023 to 22.1% in 2024.
However, this increase was driven by processing rather than catching activity. Net profit in demersal fishing declined slightly from 11.5% to 11.4%, while processing margins rose more significantly from 13.9% to 17.5%.
In contrast, the fishmeal and fish oil segment recorded a sharp drop in profitability. Net profit in this sector fell from 41.8% in 2023 to 10.6% in 2024, representing one of the most significant changes across the industry.
Balance Sheet Reflects Strong Asset Base Despite Profit Drop
Despite the decline in profitability, the aggregated balance sheet of the fishing and fish processing industry indicates a substantial asset base.
Total assets across the sector were valued at ISK 1,093 billion (approx. €7.2bn/£6.1bn) in 2024, with liabilities standing at ISK 560 billion (approx. €3.7bn/£3.1bn) and equity at ISK 533 billion (approx. €3.5bn/£3.0bn).
These figures suggest that while profitability has weakened, the overall financial position of the industry remains significant in scale.
Data Highlights Structural Differences Across Industry Segments
The figures underline the differing financial dynamics between fishing operations and processing activities, particularly within demersal fisheries where processing margins have strengthened while catching margins have remained largely unchanged.
At the same time, the sharp decline in fishmeal and fish oil profitability points to volatility within industrial processing segments.
