Brim hf. – Valuation as of 1 Jan 2025

Key assumptions

• Sales amount to EUR 417 million in 2025, increasing by 7% from the previous year and thereafter by 3% per year over the forecast period, or in line with changes in the consumer price index.
• Gross profit as a share of sales is 23% per year during the forecast period.
• Other operating expenses amount to 5.6% of sales per year during the forecast period.
• Operating assets depreciate by 9% per year during the forecast period.
• The average cost of interest-bearing debt is 5.6% per year during the forecast period, with financing mostly in EUR.
• The return on the book value of equity holdings in associates is 10% per year for the first five years of the forecast period, and then 12% per year.
• Booked fishing quotas at the beginning of the forecast period are revalued annually through comprehensive income in line with the increase in the consumer price index. This is a deviation from the company’s current accounting practices.
• Income tax payable amounts to 20% per year during the forecast period and is calculated on profit after deducting results from associates and the revaluation of fishing quotas. The revaluation of fishing quotas is recorded net of income tax, which is recognized as a tax liability.
• Investment in operating assets assumes maintenance of their real value during the forecast period.
• No purchases of fishing quotas are assumed during the forecast period.
• Dividend payments amount to 48.2% of the previous year’s total comprehensive income in 2025, and 85% per year thereafter during the forecast period, assuming an equity ratio of around 50%.
• Terminal growth at the end of the forecast period is 3%, implying zero real growth.
• See other general assumptions under “Valuation.”
• A nominal required return on equity of 10% is assumed when discounting the forecasted results for 2025–2034.

Results

• Based on the above assumptions, the estimated share value is ISK 61.3 as of 1 January 2025 (EUR 1 = ISK 144).