Distillery, producer of Flóki whisky, completed a 220 million króna share capital increase by the turn of the year due to the expansion of its factory and the development of a leisure centre. The factory will feature a state-of-the-art filling and malting facility. The share capital was purchased by the existing shareholders, demonstrating the great confidence they have in the company's plans. The company was valued at 1 billion króna before the increase.
The capital will be used to expand a factory and build a leisure centre in Bjálmholt in the Landsveit, where almost all the raw materials for production are grown. The location has been chosen to better capitalise on the tourist traffic in South Iceland, where tourist traffic is higher than in other regions of the country.
This expansion is in line with Eimskip's current business model, as around 70% of the company's sales are to tourists visiting Iceland through various distribution channels.
Budgets and market growth
Eimverks's financial forecasts indicate significant growth opportunities in the coming years. Significant growth is expected when the new facility opens, which will significantly increase the company's production capacity and enhance its ability to serve the growing tourist market.
The company's revenue streams come from various sources, such as on-trade whisky sales, duty-free sales and retail. Furthermore, exports are expected to grow significantly in the coming years, as stock levels strengthen. Whisky production is a time-consuming process, as the product must be matured for years in oak casks that previously held sherry before it can be sold.
Growth opportunities
The new facility in Bjálmholt will accelerate Eimverk's future growth, with the aim of better serving the profitable tourist market, which already accounts for 70% of its sales. With increased production capacity, Eimverk will be better able to meet the increased demand for whisky and tourist entertainment.