Kingfish Company will raise €14m
Money will ensure liquidity as it builds capacity at Netherlands facility
Netherlands fish farmer The Kingfish Company is to raise €14 million (£11.6m / NOK 165m) through a private placement of new shares to strengthen its balance sheet and ensure liquidity during ramp-up to full capacity of 4,000 tonnes per year at its land-based facility, it has announced.
The placement, directed towards existing shareholders and new investors, is expected to take place next month. The company said it has received pre-commitments and underwriting commitments securing the full offer size.
The Kingfish Company, which produces Seriola lalandi, also intends to reduce the biomass in its recirculating aquaculture system (RAS) facility in Zeeland by 300 tonnes over the next three months, targeting a standing biomass of approximately 800 tonnes by the end of the first quarter of 2025.
Sub-optimal performance
In a stock market announcement, The Kingfish Company said the farm has operated with biomass levels exceeding optimal levels over the past two quarters. Efforts to slow down production have had limited impact on the growth of the fish, while negatively impacting operational performance.
The reduction will positively impact key performance indicators, including feed conversion ratio and growth rates, enabling a return to the optimal levels which were achieved until Q1 2024, added the company. The adjustment will result in an exceptional inventory write-down of approximately € 1.8m, to be reflected in Q4 2024 financials, pending auditor review. However, the measure will have no significant cash impact.
Sales growth
“Q4 2024 marked a significant period of progress for The Kingfish Company, as we continued to accelerate sales growth with a volume increase exceeding 50%,” said chief executive Vincent Erenst.
“This reflects the strong and growing demand for our sustainable yellowtail kingfish and the effectiveness of our sales and business development efforts. At the same time, we are taking decisive steps to optimise our operations by adjusting biomass levels to restore operational efficiency and align production with demand.”
The Kingfish Company said that driven by increased sales and commercial efforts, demand for its fish is clearly increasing and sales volumes for Q4 are projected to reach between 520 and 540 tonnes. Revenue per kilo for large fish is expected to remain resilient in Q4; small fish sales are supported by seasonal promotional activities which will have a temporary effect on revenue per kg.