Iceland Seafood International has lowered its full-year earnings forecast as trawler breakdowns and operational challenges in Argentina weigh on the seafood group.

The company expects full-year 2026 normalised profit before tax (PBT) of €8.5m ($9.5m) to €10.5m, down from its previous guidance of €11.5m to €13.5m.

The revised forecast puts earnings broadly in line with its 2025 normalised PBT of €10.6m.

In a market update today (10 November), Iceland Seafood said: “The operation of the freezer trawlers was significantly affected by breakdowns, resulting in lower catches and weaker performance than targeted.”

Weaker performance across its land-based processing operations in Argentina and a bad debt of approximately €0.5m in France also pressured margins, the group added.

Iceland Seafood invested in the Argentine freezer-trawler business in 2025 to secure direct control over its shrimp supply chain, with vessels beginning operations in June 2026.

Management has introduced measures to reduce the risk of similar operational disruptions next year, the group said.

In the six months to 30 June, sales rose 16.7% year on year to €273.0m. Net profit doubled, rising 100% to €2.2m, while EBITDA fell 9.8% to €8.3m.

That interim performance followed a profitable 2025, when Iceland Seafood reported a 9% year-on-year increase in sales to €484.3m, a 26.7% rise in EBITDA to €22.8m, and a 164.3% surge in net profit to €7.4m.

Looking ahead, Iceland Seafood cautioned fourth-quarter trading remains the "most important" period for the business, with full-year performance largely dependent on the start of the Rawson shrimp season in Argentina.

The group added the potential sale of Spanish smoked-fish subsidiary Ahumados Domínguez has not been concluded and any proceeds remain excluded from the revised forecast.