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% to EUR 15.1 (H1 2022: EUR 12.0 per kg)
o	Gross margin per kg up 43% to EUR 2.1 (H1 2022: EUR 1.5 per kg)
o	Operational EBITDA per kg sold was EUR -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	On July 5, 2023, the Company signed a convertible loan agreement of EUR 32
million
o	Maine's Superior Court denied an appeal on August 28, 2023. Kingfish Maine
upholds the permits to build 8,500 tons facility in Jonesport, 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 in the Netherlands, continue
our efforts to improve our operational performance, and increase sales volume",
said Vincent Erenst, CEO of The Kingfish Company. 

Financial review

In H1 2023, revenue increased 31% to EUR 11.2 million (H1 2022: EUR 8.4 million).
Revenue per kg was EUR 15.1 (H1 2022: EUR 12.0 per kg). Total volume sold amounted
to 740 tons, an increase of 5%. The demand for Dutch 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 of June 2023. 


Gross margin increased 50% to EUR 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 to EUR 2.1 per kg (H1 2022: EUR 1.5 per kg).

In the first half of 2023, operational EBITDA amounted to EUR -2.2 million (H1
2022: EUR -2.2 million). EBITDA per kg was EUR -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 was EUR -4.2 million (H1 2022: EUR
-2.8 million), driven mainly by higher financial expenses. 

Capital expenditure

The Group spent EUR 16.1 million in capital expenditure during the first half of
2023, including 
EUR 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 reported EUR -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 on June 30, 2023, amounted to EUR 60.4 million (EUR 54.8 million at
December 31, 2022), an increase of EUR 5.6 million compared to December 31, 2022.

Financing

At the start of July 2023, the Company successfully raised EUR 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 and Rabobank 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 for The 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 in
the Netherlands is fully commissioned, enabling us to meet the growing demand
for high-quality Dutch 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 and
Europe.

Webcast

CEO Vincent Erenst and CFO Jean-Charles Valette will present the H1 2023
financial results on Thursday September 7, 2023, at 14:00 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.com

Company News feed 
https://www.the-kingfish-company.com/news

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 1,500 tons of high quality and high-value yellowtail
kingfish. Expansion is underway and capacity in the Netherlands is expected to
reach 3,500 tons. 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 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 by
Aquaculture Stewardship Council (ASC), Best Aquaculture Practices (BAP) and
British Retail Consortium (BRC). It was the winner of the 2019 Seafood
Excellence Award, and it is recommended as green choice by Good 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 the Norwegian Securities
Trading Act.

Click here for more information

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