Dear shareholders,
In the face of the milestones that lie ahead, it is appropriate to review the progress made so far.
When I was a young doctor in the 1980s, I saw an opportunity to build health tourism services at the Blue Lagoon in Iceland, given the reputation that the lagoon had for healing skin diseases, particularly psoriasis.
This led to the establishment of the Blue Lagoon Health Company, now the Blue Lagoon Company.
In the beginning, the company conducted scientific research that confirmed the healing power of the geothermal water, which at the time was considered an unusable byproduct of geothermal energy production in Svartsengi.
Guided by the interplay of nature and design, we built the current bathing resort in 1999. We managed to create a unique experience rooted in Icelandic bathing culture, which led to the transformation of the Blue Lagoon into the popular destination we know today.
We have always been true to the healing power and to our origin, and we have succeeded in creating a versatile resource from worthless wastewater, based on scientific research into the healing power, bioactive compounds and chemical composition of the Blue Lagoon.
We have used this knowledge to, among other things, develop our skin care products, where patented bioactive ingredients extracted from the lagoon play a key role.
In 2012, when National Geographic named the Blue Lagoon water as one of the 25 wonders of the world, we received a pleasant endorsement of the Blue Lagoon’s uniqueness on a global scale.
At the Blue Lagoon Company, we have emphasized quality, design, sustainability and social responsibility from the beginning, respecting the environment and local communities in all our developments and operations.
Our excellent people have played a key role in the company’s journey, upholding our core values and guiding light: Wellbeing for people and planet.
In this context, it is interesting to think about how the Blue Lagoon Company has grown from a single employee in an office in Grindavík to one of the largest workplaces in the country over the past three decades.
We at the Blue Lagoon Company have faced some very difficult challenges along our journey.
When the banking crisis struck in 2008, we had just completed major construction projects but managed to pull through that difficult period with dignity.
As the number of travelers to Iceland began to increase after the crash, our visitor count escalated, requiring improved facilities, enhanced access control, and the construction of The Retreat. This was accompanied by a refreshed Blue Lagoon brand and, for the first time in Iceland, enabled access to a target group of wealthy tourists.
During the pandemic, I had to make the most difficult management decision of my career, laying off 600 people.
But I’m also proud that we, the 120 who remained, managed to use the pandemic to boost our resilience and we emerged from the pandemic even stronger than before.
I’m also proud of how we have naigated the period of seismic activity in Reykjanes over the past two and a half years, and the decision I made at the outset not to lay off staff.
That decision proved to be a fortunate one and key to the solidarity and strength that our staff has shown throughout the period of volcanic activity in Reykjanes. There is now growing hope that this period is drawing to an end, and I have full faith that we will also emerge from this disaster stronger than when we went into it.
It has been invaluable to face challenges and opportunities with the support of the wonderful colleagues I have been fortunate enough to have join me in all these years since I took the initiative to establish the Blue Lagoon Company.
We have managed to accomplish incredible things, and I doubt that any other company, either here or abroad, could have handled the success and adversity of the last few decades in the same way that we have.
The Blue Lagoon Company is and has been playing a leading role in the development of Icelandic tourism. Through innovation and the evolution of the Blue Lagoon Iceland brand, which has become known worldwide, it has significantly strengthened Iceland on the international stage as a health and wellness destination.
At the same time, we have created a new industry in Iceland, which is the operation of geothermal lagoons.
We can now boast of leading the country's largest sector, with destinations in operation and developments across the country and, of course, our crown jewel, the Blue Lagoon in Svartsengi, which is unique on a world scale.
I have full faith that we have a lot in store, both for the Blue Lagoon Company and Iceland as a whole.
We now look forward to enjoying the power of a new CEO, Sigríður Margrét Oddsdóttir, who takes on this job with new energy and a fresh vision for the company's operations.
I believe we are embarking on these big changes at the right time, because in many ways this is a turning point for the company that we have built from the ground up over the past decades.
We are now preparing for the listing of the Blue Lagoon Company on the securities market in an operating environment that has so rapidly changed in recent months, not least with the introduction of artificial intelligence.
The competitive environment has also changed, but increased competition is good for us, and I believe we can achieve even greater success in this new and exciting landscape.
I am happy to step aside as CEO but will continue to support the company and our new CEO as Chairman of the Board and look ahead with great optimism.
My vision for the future since the very foundation of the Blue Lagoon Company has been: Iceland as a unique destination for health and wellbeing.
Opportunities lie before us; we are just getting started!
