FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements for the year 2020 are prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union. The consolidated financial statements include the financial statements of Brims hf. and its subsidiaries.

Financial Statements Brim 2020

INTERESTING FACT!
The total catch of trawlers was 45,326 tonnes, compared to 50,469 tonnes in 2019. Catch on the fishing day was 27,7 tonnes in 2020 compared to 29,2 tonnes in 2019.

OPERATIONS FOR THE YEAR 2020

The operating revenue of Brim hf. in 2020 amounted to €292.4 million, compared to €261.3 million the previous year. Operating income before depreciation (EBITDA) was €57.4 million or 19.6% of operating revenue, compared to €63.3 million or 24.2% the previous year. Financial expenses were €6.8 million, compared to €4.6 million the previous year. The effect of affiliates was positive by €0.8 million, compared to a negative effect of €1.6 million the previous year. Profit before income tax was €36.4 million, compared to €43.0 million the previous year. Income tax charged amounted to €7.5 million, compared to €9.3 million the previous year. Profit for the year was therefore €29.4 million, compared to €34.0 million the year before.

The average number of man-years in 2020 was 769 but was 798 in 2019. Wages and wage-related expenses amounted to a total of €66.9 million, compared to €76.6 million the previous year (ISK 10.3 billion at the average exchange rate for the year, compared to ISK 10.5 billion the previous year).

INCOME STATEMENT 2020

Clear. 2020 2019
Sales 4 292.438 261.322
Cost of sales (233.023) (188.969)
Gross profit 59.415 72.353
Other income 6 0 214
Export expenses (7.071) (10.420)
Other expenses 10 (9.975) (12.964)
Profit from operation 42.369 49.183
Finance income 1.967 448
Finance expenses (7.611) (6.372)
Net foreign exchange difference (1.135) 1.306
Net finance expenses 12 (6.779) (4.618)
Share of profit of associated companies 17 819 (1.552)
Profit before income tax 36.409 43.013
Income tax 13 (7.516) (9.283)
Profit from ongoing operations 28.893 33.730
Discontinued operations 5 472 228
Profiit for the year 29.365 33.958
EBITDA 57.401 63.333
Earnings per share
Basic and diluted earnings per share (ISK) 23 0,015 0,019

All amounts are in thousands of euros. To go to the financial statements click here

OVERVIEW OF THE OVERALL PERFORMANCE OF THE YEAR 2020

Clear. 2020 2019
Net earnings for the year 29.365 33.958
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Translation difference (2.699) 466
Hedges for long-term liabilities 22 89 (335)
Total comprehensive income for the year 26.755 34.089

All amounts are in thousands of euros. To go to the financial statements click here

FINANCIAL POSITION

The Group's total assets amounted to €765.0 million at the end of 2020. Whereof, fixed assets amounted to €647.9 million and current assets to €117.1 million. At the end of the year, the Group's total liabilities amounted to €427.5 million and equity amounted to €337.5 million. The equity ratio was 44.1% but was 45.3% at the end of 2019.

BALANCE SHEET 2020

Clear. 2020 2019
Assets
Operating assets 14 188.475 169.224
Operating assets under construction 15 0 51.045
Intangible assets 16 329.689 297.997
Investments in equity-accounted investees 17 36.322 28.839
Long-term receivables from related parties 18 91.883 0
Other investments, change 19 1.493 2.399
Total non-current assets 647.862 549.504
Inventories 20 56.898 59.768
Trade and other receivables 21 28.059 37.931
Receivables from related parties 33 10.573 0
Cash and cash equivalents 21.596 53.497
Total current assets 117.126 151.196
Total assets 764.988 700.700
Equity
Share capital 20.052 19.913
Statutory reserve and share premium 59.431 54.298
Translation reserve 118 2.817
Other restricted earnings 49.019 36.230
Retained earnings 208.850 204.106
Total equity 22 337.470 317.364
Liabilities
Loans and borrowings 24 256.469 249.780
Deferred tax liability 25 69.383 71.465
Total non-current liabilities 325.852 321.245
Loans and borrowings 24 63.715 28.504
Trade and other payables 26 21.373 22.688
Payables to related parties 33 5.973 2.232
Current tax liabilities 25 10.605 8.667
Total current liabilities 101.666 62.091
Liabilities 427.518 383.336
Total equity and liabilities 764.988 700.700

All amounts are in thousands of euros. To go to the financial statements click here

CASH FLOWS

Net cash from operating activities amounted to €43.1 million in 2020, compared to €56.7 million the year before. Investments amounted to €83.0 million. Financing activities were positive by €8.0 million. Net cash from operating activities therefore decreased by €31.9 million and was €21.6 million at the end of the year.

CASH FLOWS 2020

Clear. 2020 2019
Operating activities
Rekstrarhagnaður ársins 42.369 49.183
Profit from operations
Adjustments for: 15.046 14.364
Depreciation and amortisation (14) (214)
Profit from sale of operational assets 57.401 63.333
Changes in current assets (11.499) 2.450
Changes in current liabilities 11.572 (2.353)
Changes in current assets and liabilities 73 97
Interest received 951 466
Interest paid (7.610) (6.459)
Paid taxes (7.666) (717)
Net cash from operating activities 43.149 56.720
Cash flows used in investing activities
Acquisition of operating assets 14 (23.963) (7.080)
Acquisition of operating assets under construction 15 (12.401) (11.702)
Proceeds from sale of operating assets 1.840 21.993
Proceeds from sale of intangible assets 0 12.329
Investment in subsidiaries less received cash (17.286) 11.631
Sale of subsidiaries less cash 138 0
Long-term receivables from related parties 18 (29.763) 0
Proceeds from long-term receivables 304 0
Other investments, change (1.917) (35)
Net cash (used in) from investing activities (83.048) 27.136
Cash flows from financing activities
Dividends paid (11.921) (13.353)
Purchase of own shares 0 (13.963)
Proceeds from current loans and borrowings 37.035 (101.582)
Proceeds from non-current loans 5.375 103.345
Repayment of non-current loans and borrowings (22.491) (43.085)
Net cash (used in) from financing activities 7.998 (68.638)
Changes in cash and cash equivalents (31.901) 15.218
Cash and cash equivalents at the beginning of the year 53.497 38.279
Cash and cash equivalents at year-end 21.596 53.497
Investing and financing activities not affecting cash flows
Proceeds from sale of operating assets under construction 64.155 0
Long-term receivables from related parties (64.155) 0
Investment in subsidiaries (5.272) 0
Sale of own shares 5.272 0
Proceeds from sale of subsidiaries 562 0
Long-term receivables (562) 0
Investment in subsidiaries 0 (31.105)
Proceeds from increase in share capital 0 31.105

All amounts are in thousands of euros. To go to the financial statements click here

MAIN RESULTS CONVERTED TO ISK

If the results of the income statement are converted to Icelandic krónur at the average exchange rate for the year 2020 (EUR 1 = ISK 154.52), revenue will be ISK 45.2 billion, EBITDA ISK 8.9 billion and profit ISK 4.5 billion. If the results of the balance sheet are converted to Icelandic krónur at the closing exchange rate of the year 2020 (EUR 1 = ISK 156.1), assets will total ISK 119.4 billion, liabilities ISK 66.7 billion and equity ISK 52.7 billion.

STATISTICS 2016-2020

OPERATING REVENUE

EBITDA

PROFIT BEFORE INCOME TAX

Years Profits

WORKING CAPITAL FROM OPERATIONS

Eigið fé

INTERESTING FACT!
In 2020, 17,865 kg of organic waste from Brims' operations went to composting. That amounts to around 8,933 kg of ready-made mulch. TAX FOOTPRINT

TAX FOOTPRINT

TAX FOOTPRINT OF BRIM AND ICELANDIC SUBSIDIARIES

Value creation from the Group's operations in 2020 amounted to ISK 31.9 million. The amount was distributed to the community in a variety of ways, such as through wage payments to employees, payments of wage-related charges, purchases of supplies from suppliers, the payment of other public charges, etc.

The tax burden of the consolidated group in 2020 amounted to ISK 4.4 million, or 13.8% of its value creation. Approximately 41% of the amount is statutory dues relating to employees and 18% is income tax.

In addition to the taxes, recognised by the companies as an expense, the companies collected and paid taxes and dues not considered charges but which related, nevertheless, to their operation and the direct value they create. Such taxes collected amounted to ISK 3.8 million in 2020.

The Group's tax footprint in 2020 amounted to a total of ISK 8.2 million.

FINANCIAL VALUE THAT THE COMPANY CREATED THROUGH ITS OPERATION IN 2020

COMPANY EXPENSES 2020 2019 2018 2017
Fishing quota fee m.ISK 454 734 1.068 756
Tax burden resulting from employees m.ISK 1.787 1.646 1.337 1.291
Catch dues and port fees m.ISK 225 170 134 184
Taxes on assets m.ISK 150 126 103 136
Income tax m.ISK 1.503 1.065 31 129
Carbon tax m.ISK 257 226 206 128
Other taxes m.ISK 1 1 1 1
Collected taxes m.ISK 4.377 3.968 2.880 2.625
Employee tax burden m.ISK 3.571 3.439 2.699 2.686
Capital income tax m.ISK 252 178 125 184
Collected taxes m.ISK 3.823 3.617 2.824 2.870
Brim’s total tax footprint m.ISK 8.200 7.585 5.704 5.495