Starting the year with record sales volume
Highlights Q1 2024
- Biomass growth of 642 tons (Q1 2023: 421 tons)
- Volume sold up 13% to 410 tons (Q1 2023: 363 tons)
- Revenue up by 5% to €5.9 million (Q1 2023: €5.6 million)
- Revenue per kg decreased to € 14.4 (Q1 2023: € 15.1 per kg)
- Gross margin per kg sold increased 90% to € 4.6 per kg (Q1 2023: € 2.4 per kg)
- Operational EBITDA per kg sold up 82% to € -0.6 per kg (Q1 2023: € -3.1 per kg)
Kats, Netherlands – May 8, 2024: The Kingfish Company N.V. (the “Company”; “Kingfish”; OSE: KING), pioneer and leader in sustainable land-based production of yellowtail kingfish, announces Q1 2024 financial results.
“The first-quarter financial results indicate a promising start to the year, with an increase in sales volume, and operational EBITDA closing in on break-even. Our primary focus this year is on further development of sales and operations; we are expanding sales to both existing and new clients in Europe and North America, while simultaneously exploring new markets for our Yellowtail Kingfish. We will also work with our team on further improvement of operational efficiency,” said Vincent Erenst, CEO of The Kingfish Company.
Financial review
The biological performance continued to exceed expectations, achieving a biomass growth of 642 tons in the quarter, slightly higher than the 626 tons achieved in Q4 2023. The standing biomass reached 1,043 tons at the end of the first quarter. As we have almost reached the maximum carrying capacity of our installations, we proactively manage growth. This explains the lower productivity of 0.57 kg per cubic meter per day (Q4 2023: 0.63 kg per cubic meter per day). New feed formulations, improved quality of the juveniles in combination with lower temperature, resulted in a reduction of the eFCR to 1.26, a significant improvement compared to 1.42 in Q4 2023.
Revenue increased by 5% to €5.9 million, compared to €5.6 million in Q1 2023. This growth was primarily driven by increased sales to the retail sector, while growth in the horeca sector will accelerate with the start of the summer season. Total volume sold reached 410 tons, up from 363 tons in Q1 2023. However, the average revenue per kilogram declined from €15.1 in Q1 2023 to €14.4, attributed to intensified promotional activities in retail. Despite facing increased price competition in the US frozen market, sales volumes in North America experienced significant growth, alongside positive performance in Italy, France and Spain.
As we continued to ramp-up production and sales to fully utilize the Phase 2 capacity, the Company made significant progress towards reaching profitability, with a 90% increase in gross margin per kg to €4.6 (Q1 2023: €2.4 per kg).
Sales and marketing expenses saw a 46% increase compared to Q1 2023, driven by intensified activities aimed at accelerating the penetration of Yellowtail Kingfish in our key markets and exploring new promising markets. Despite these investments, the Company is approaching operational EBITDA break-even. The operational EBITDA loss narrowed substantially in the quarter by 80% to €-0.3 million (compared to Q1 2023:
€-1.1 million).
Cash flow and liquidity
On March 31, 2024, the Company maintains liquidity of €26 million, comprising €20 million in cash and short-term deposits, along with €6 million in financing facilities. Cash usage in the first quarter amounted to €5.2 million. Capex spent in the period amounted to €1.2 million, while inventory increased by €2.5 million. The biomass increased by 76 tons compared to the end of December 2023 and is now approaching the optimal volume. Frozen inventory increased by €1.2 million in the period.
The €75 million Phase 2 financing facility from PCP has been fully drawn down in the period and the Company has started paying interest in cash. Net debt (IFRS) stood at €84.6 million, reflecting an increase of €7.5 million compared to the €77.1 million reported on December 31, 2023.
Profit and loss statement
The numbers below are unaudited.
| (in m€, unless stated otherwise) | 1Q ‘24 | 1Q ‘23 |
| Volume sold (MT) | 410 | 363 |
| Revenue | 5.9 | 5.6 |
| Revenue per kg | 14.4 | 15.1 |
| Gross margin | 1.9 | 0.7 |
| Gross margin per kg | 4.6 | 2.4 |
| Operational EBITDA | -0.3 | -1.1 |
| Operational EBITDA per kg | -0.6 | -3.1 |
| Growth expenses | -0.2 | -0.2 |
| FVA | 1.2 | 0.4 |
| Restructuring | -0.1 | 0.0 |
| Depreciation | -3.3 | -0.8 |
| EBIT | -2.6 | -1.7 |
Outlook
As The Kingfish Company continues to navigate through its growth journey, we are excited about the potential that lies ahead. The Company is focusing on accelerating revenue growth, while optimizing operations and is investing significantly in sales and marketing to accelerate the expansion of its customer base and develop existing and new markets.
Whereas the current main priority is on optimizing the operations in the Netherlands, the Company also continues to develop expansion plans in the US and the Netherlands. The Company expects to benefit from the scaling effect and further improvement in operations and productivity to become profitable and cash positive.
The Company is closely monitoring the development of its liquidity position and is focused on ensuring that it remains fully financed to sustain the current growth trajectory.
Webcast
CEO Vincent Erenst and CFO Jean-Charles Valette will present the Q1 2024 financial results on Wednesday May 8, 2024, at 14:00 CET. The online presentation will be followed by a Q&A session. The presentation will be available on our website before the start of the webcast.
Click here to access the webcast.
For media and investor inquiries, please contact
press@the-kingfish-company.com
Company News feed
About The Kingfish Company
The Kingfish Company is a pioneer and leader in sustainable land-based aquaculture. Current annual production capacity at its Kingfish Zeeland facility in the Netherlands is 3,500 tons of high quality and high-value yellowtail kingfish. Next expansion opportunities are in the Netherlands and the US. Kingfish Maine is fully permitted by local, state, and federal regulatory agencies to build an 8,500 tons production facility.
Production is based on advanced recirculating aquaculture systems (RAS), which protect biodiversity and ensure biosecurity. Animal welfare is paramount, and the fish is grown without use of antibiotics and vaccines. Operations run on 100 percent renewable electricity, sourced from wind, solar and biogas. The Company’s facilities operate on sea water, avoiding wasting precious fresh water.
The Kingfish Company’s main product, the Dutch Yellowtail (also known as ricciola/hiramasa/greater amberjack) is a highly versatile premium fish species, well known in the Italian and Asian fusion cuisines. Its products are certified and approved as sustainable and environmentally friendly by Aquaculture Stewardship Council (ASC), Best Aquaculture Practices (BAP), GLOBALG.A.P. and Friend of the Sea. It was the winner of the 2019 Seafood Excellence Award, and it is recommended as green choice by Good Fish Foundation. Yellowtail amberjack farmed in recirculating aquaculture systems is rated a Green Best Choice by Seafood Watch
This press release contains certain non-IFRS financial measures which are not recognized measures of financial performance under IFRS. All figures in the press release are unaudited.
This information is pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.