Phase 2 Construction on Track and Fully Financed Highlights H1 2023 o Total volume sold: 740 tons (H1 2022: 702 tons) o Revenue per kg increased 26% toEUR 15.1 (H1 2022:EUR 12.0 per kg) o Gross margin per kg up 43% toEUR 2.1 (H1 2022:EUR 1.5 per kg) o Operational EBITDA per kg sold wasEUR -3.0 per kg (H1 2022:EUR -3.1 per kg) o Path to profitability - on track to reach positive operational EBITDA in the second half of 2024, and positive free cash flow in the second half of 2025 Subsequent events o OnJuly 5, 2023 , the Company signed a convertible loan agreement ofEUR 32 million oMaine's Superior Court denied an appeal onAugust 28, 2023 . KingfishMaine upholds the permits to build 8,500 tons facility inJonesport, Maine (US) Kats,Netherlands -September 7, 2023 :The Kingfish Company N.V. (the "Company"; "Kingfish"; OSE: KING), pioneer and leader in sustainable land-based production of yellowtail kingfish, announces its Q2 and H1 2023 financial results. "Our fin.ancial results for the first half of 2023 are marked by key progress in operations and in strengthening our balance sheet. We have laid out a solid foundation to accelerate growth and reach profitability. In the second half of the year, we will complete the Phase 2 expansion inthe Netherlands , continue our efforts to improve our operational performance, and increase sales volume", saidVincent Erenst , CEO ofThe Kingfish Company . Financial review In H1 2023, revenue increased 31% toEUR 11.2 million (H1 2022:EUR 8.4 million ). Revenue per kg wasEUR 15.1 (H1 2022:EUR 12.0 per kg). Total volume sold amounted to 740 tons, an increase of 5%. The demand forDutch Yellowtail , particularly fresh large size fish, continues to surpass the available supply. In the first half year, the Company achieved record production of 932 tons net growth (H1 2022: 742 tons). This has resulted in sector leading productivity of 0.90 kg net growth per installed cubic meter per day and eFCR for the period of 1.30 compared to 1.49 in H1 2022. Operations at Kingfish started more than five years ago and the 58th cycle was in production at the end ofJune 2023 . Gross margin increased 50% toEUR 1.5 million (H1 2022:EUR 1.0 million ), or to 13.9% of revenue (H1 2022: 12.1%), despite significantly higher input costs. Increased feed prices have been partially offset by an improved biological performance and the introduction of new feed formulations. Energy costs, which peaked in H2 2022, were lower in H1 2023 as we benefitted from a favorable contract. Overall, the increased sales prices offset the higher input costs leading to an increase in gross margin toEUR 2.1 per kg (H1 2022:EUR 1.5 per kg). In the first half of 2023, operational EBITDA amounted toEUR -2.2 million (H1 2022:EUR -2.2 million ). EBITDA per kg wasEUR -3.0 (H1 2022:EUR -3.1 per kg). SG&A costs increased year-on-year by 19% mainly related to one-off transformation related costs to strengthen the organization and to anticipate the additional volume as of Q1 2024. The net loss after tax in the first half of 2023 wasEUR -4.2 million (H1 2022:EUR -2.8 million ), driven mainly by higher financial expenses. Capital expenditure The Group spentEUR 16.1 million in capital expenditure during the first half of 2023, includingEUR 1.3 million farm and US growth capex. Operations in Phase 2 started in May, with 60% of the grow-out systems operational as of end of August. Growth and performance have been outstanding. The farm biomass is expected to more than double before year-end, compared to Phase 1 steady-state level. Cash flow The Company reportedEUR -2.2 million (H1 2022:EUR -1.5 million ) of operating cash flow in the first half of the year. The difference is mainly driven by a reduction in capex payable and an increase in biomass after the start-up of the Phase 2 grow-out systems. Net debt onJune 30, 2023 , amounted toEUR 60.4 million (EUR 54.8 million atDecember 31, 2022 ), an increase ofEUR 5.6 million compared toDecember 31, 2022 . Financing At the start ofJuly 2023 , the Company successfully raisedEUR 32 million by way of a convertible loan with a fixed interest rate and a duration of 4 years. By mid-August, the total amount had been received by the Company. The convertible loan and the other remaining facilities from PCP andRabobank provide full funding for the completion of the Phase 2 expansion and the period until the Company reaches positive cash flow and profitability. Outlook Management remains positive about the outlook forThe Kingfish Company . With financing secured for the completion of Phase 2 and a clear path to profitability, we can focus fully on growing the business and optimizing operations. The Group capacity will more than double after the new extension of the farm inthe Netherlands is fully commissioned, enabling us to meet the growing demand for high-qualityDutch Yellowtail . The Company expects to benefit from the scaling effect and further improvement in operations and productivity to become profitable and cash positive. Where the current focus is on completion of the Zeeland project, management continues to develop expansion plans in the US andEurope . Webcast CEOVincent Erenst and CFOJean-Charles Valette will present the H1 2023 financial results onThursday September 7, 2023 , at14:00 CEST . 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. Call in details: Click here to access the webcast. For media and investor inquiries, please contact: press@the-kingfish-company.com ir@the-kingfish-company.comCompany News feed https://www.the-kingfish-company.com/news AboutThe Kingfish Company The Kingfish Company is a pioneer and leader in sustainable land-based aquaculture. Current annual production capacity at its Kingfish Zeeland facility inthe Netherlands is 1,500 tons of high quality and high-value yellowtail kingfish. Expansion is underway and capacity inthe Netherlands is expected to reach 3,500 tons. KingfishMaine 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 at present, 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 byAquaculture Stewardship Council (ASC), Best Aquaculture Practices (BAP) andBritish Retail Consortium (BRC). It was the winner of the 2019 Seafood Excellence Award, and it is recommended as green choice byGood Fish Foundation . This press release contains certain non-IFRS financial measures which are not recognized measures of financial performance under IFRS. This information is pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to Section 5-12 theNorwegian Securities Trading Act.
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