Financial Statements

Financial Statements

Financial Statements

The consolidated financial statements for the year 2022 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.

Operation for the year 2022

The operating revenue of Brim hf. in 2022 amounted to €450.9 million, compared to €387.9 million the previous year. Operating income before depreciation (EBITDA) was €117.7 million or 26.1% of operating revenue, compared to €93.2 million or 24.0% the previous year. Financial expenses were €3,6 million, compared to €6,8 million the previous year. The effect of affiliates was positive by €0.8 million, which is the same as the previous year. Profit before income tax was €94.7 million, compared to €36.4 million the previous year. Income tax charged amounted to €19.5 million, compared to €7.5 million the previous year. Profit for the year was therefore €75.2 million, compared to €29.4 million the year before.

The average number of man-years in 2022 was 762 but was 769 in 2021. Wages and wage-related expenses amounted to a total of €78.5 million, compared to €66.9 million the previous year (ISK 10.3 billion at the average exchange rate for the year, compared to ISK 11.8 billion the previous year).læ

Income statement 2022

20222021
Sales
450,928
387,931
Cost of sales
(321,760)
(293,482)
Gross profit
129,168
94,449
Other income
0
20,891
Export expenses
(11,274)
(8,017)
Other expenses
(16,592)
(9,806)
Profit from operation
101,302
97,517
Finance income
3,065
3,962
Finance expenses
(8,847)
(7,575)
Net foreign exchange difference
1,568
(20)
Net finance expenses
(4,214)
(3,633)
Share of profit of associated companies
2,038
805
Profit before income tax
99,126
94,689
Income tax
(19,830)
(19,487)
Profit for the year
79,296
75,202
EBITDA
117,713
93,200
Earnings per share
Basic and diluted earnings per share (ISK)
0.041
0.039

All numbers are in thousands of Euro. Brim Financial Statement 2022

Overview of the overall performance of the year 2022

20222021
Net earnings for the year
79,296
75,202
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Translation difference
(1,145)
747
Hedges for long-term liabilities
2,708
521
Total comprehensive income for the year
80,859
76,470

All numbers are in thousands of Euro. Brim Financial Statements 2022

Financial statements

Financial Position

The Group's total assets amounted to €795.9 million at the end of 2021. Whereof, fixed assets amounted to €627.5 million and current assets to €168.4 million. At the end of the year, the Group's total liabilities amounted to €397.5 million and equity amounted to €398.4 million. The equity ratio was 50.0% but was 44.1% at the end of 2021.

Balance sheet 2022

20222021
Assets
Operating assets
199,088
181,496
Intangible assets
391,511
323,730
Investments in equity-accounted investees
47,363
45,437
Long-term receivables from related parties
24,980
75,347
Other investments, change
1,478
1,536
Total non-current assets
664,340
627,546
Inventories
74,854
50,313
Trade and other receivables
34,074
28,270
Receivables from related parties
7,644
12,888
Cash and cash equivalents
161,975
76,889
Total current assets
278,547
168,360
Total assets
942,887
795,906
Equity
Share capital
20,083
20,052
Statutory reserve and share premium
61,686
59,431
Translation reserve
(280)
865
Other restricted earnings
57,555
62,032
Retained earnings
313,231
256,026
Total equity
452,275
398,406
Liabilities
Loans and borrowings
136,777
258,568
Deferred tax liability
77,721
76,165
Total non-current liabilities
214,498
334,733
Loans and borrowings
230,246
26,117
Trade and other payables
25,519
21,540
Payables to related parties
2,439
2,775
Current tax liabilities
17,910
12,335
Total current liabilities
276,114
62,767
Liabilities
490,612
397,500
Total equity and liabilities
942,887
795,906

All numbers are in thousands of Euro. Brim Financial Statements 2022

Financial statement

Cash flow

Net cash from operating activities amounted to €82.5 million in 2022, compared to €43.1 million the year before. Investments amounted to €24.5 million. Financing activities were negative by €51.8 million. Net cash from operating activities therefore decreased by €55.3 million and was €76.9 million at the end of the year.

20222021
Operating activities
Profit from operation
101,302
97,517
Ajustments for:
Depreciation and amortisation
16,470
16,574
Transfer of own shares
2,286
0
Profit from sale of intangible assets
0
(17,813)
Profit from sale of operational assets
(58)
(3,078)
120,000
93,200
Changes in current assets
(25,101)
3,984
Changes in current liabilities
1,697
(1,582)
Changes in current assets and liabilities
(23,404)
2,402
Interest received
3,062
3,954
Interest paid
(8,592)
(7,528)
Paid taxes
(12,062)
(9.490)
Net cash from operating activities
79,004
82,538
Cash flows used in investing activities
Acquisition of operating assets
(13,544)
(3,749)
Proceeds from sale of operating assets
161
5,328
Proceeds from sale of intangible assets
0
22,462
Investment in intangible assets
(466)
(61)
Investment in subsidiaries less received cash
(7,205)
0
Long-term receivables from related parties
53,723
0
Proceeds from long-term receivables
0
705
Other investments, change
723
(151)
Net cash (used in) from investing activities
33,392
24,534
Cash flows from financing activities
Dividends paid
(29,276)
(15,534)
Proceeds from current loans and borrowings
1,715
(36,460)
Proceeds from non-current loans
16,984
36.473
Repayment of non-current loans and borrowings
(16,733)
(36,258)
Net cash (used in) from financing activities
(27,310)
(51.779)
Changes in cash and cash equivalents
85,086
55,293
Cash and cash equivalents at the beginning of the year
76,889
21,596
Cash and cash equivalents at year-end
161,975
76,889

All numbers are in thousands of Euro. Brim Financial Statements 2022

Financial statement

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 2021 (EUR 1 = ISK 150.19), revenue will be ISK 58.3 billion, EBITDA ISK 14.0 billion and profit ISK 11.3 billion. If the results of the balance sheet are converted to Icelandic krónur at the closing exchange rate of the year 2021 (EUR 1 = ISK 147.6), assets will total ISK 117.5 billion, liabilities ISK 58.7 billion and equity ISK 58.8 billion.

Statistics 2018-2022

Tax footprint

Tax footprint of Brim and Icelandic subsidiaries

Value creation from the Group's operations in 2021 amounted to ISK 42.7 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 2021 amounted to ISK 5.2 million, or 12.2% of its value creation. Approximately 42% of the amount is statutory dues relating to employees and 20% 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 3.9 million in 2021.

The Group's tax footprint in 2021 amounted to a total of ISK 9.1 million.

Tax footprint (ISK million)

20182019202020212022
Collected taxes
2,879
3,967
4,376
5,242
6,168
Income tax
31
1,065
1,503
1,780
2,456
Fishing quota fee
1.068
734
454
903
839
Payroll taxes
551
659
650
670
780
Pension funds and unions
786
987
1,137
1,234
1,346
Carbon tax
206
226
257
271
295
Catch dues and port fees
134
170
225
236
291
Taxes on assets
103
126
150
148
161
Collected taxes
2,699
3,439
3,571
3,858
4,419
Employee tax burden
2,699
3,439
3,571
3,858
4,419
Brim’s total tax footprint
5,578
7,406
7,947
9,100
10,586

Brim Tax Footprint 2022 - in Icelandic