Sales growth accelerating for kingfish farmer

The Kingfish Company N.V. a producer of land-based production of yellowtail kingfish, has published its Q2 financial results with the following highlights Q2:

• Volume sold 512 tons, up 36% (Q2 2023: 377 tons)
• Revenue increased 31% to € 7.3 million (Q2 2023: € 5.6 million)
• Revenue per kg € 14.2 (Q2 2023 € 14.8 per kg)
• Operational EBITDA improved to € -1.6 per kg (Q2 2023: € -2.9 per kg)
• New sales and marketing initiatives to increase penetration of Yellowtail Kingfish in targeted markets
• The U.S. appeals court upheld permit for construction of a farm in Jonesport, MaineKats, Netherlands

“Q2 2024 showed an acceleration of our growth marked by a 36% increase in volume to 512 tons and revenue of € 7.3 million, an increase of 31 % compared to lastyear. Our efforts in penetrating key markets and exploring new territories arestarting to pay off as we continue to build up our sales team." said Vincent Erenst,CEO of The Kingfish Company. 

"Our farm's biological performance is highly encouraging, with biomass growthreaching 631 tons and the standing biomass more than doubling to 1,075 tons. Our RAS systems are operating beyond expected performance, underscoring the effectiveness of our technology and processes in consistently and reliably producing high-quality, sustainable yellowtail kingfish,” he continues.

Financial and operational review

During the second quarter, the Company demonstrated substantial sales acceleration, achieving a record volume of 512 tons, marking a 36% increase compared to the same period last year. 

"This growth is a result off ocused efforts to penetrate key markets and expand into new territories, driving our revenue to € 7.3 million, a 31% increase from Q2 2023." the Company tells.

Operational 

EBITDA improved by 26% , reaching €-0.8 million in Q2 2024, up from€ -1.1 million in Q2 2023. For the first six months of 2024, operational EBITDA saw a 53% improvement to € -1.0 million from € -2.2 million in H1 2023. 

This positive change in EBITDA was driven by increased revenue and enhanced production efficiency. 

By the end of Q2 2024, standing biomass reached 1,075 tons, up 110% from the same quarter in 2023, and up 3% from Q1 2024. Due to unexpectedly strong biomass growth, and in order to align production to market demand, the company implemented growth control measures, leading to temporarily reduced productivity at 0.56 kg growth per cubic meter per day (Q1 2024: 0.57 kg per cubic meter perday) and an increased eFCR of 1.47 (Q1 2024: 1.26). 

The biomass has reached its maximum carrying capacity, though harvest capacity has not yet peaked, explaining the slight decline in productivity.

Outlook

"As The Kingfish Company continues to navigate through its sales and market development phase, we remain optimistic about the opportunities ahead. The Company is focusing on accelerating revenue growth, while optimizing operations and making substantial investments in sales and marketing to expand its customer base and develop existing and new markets", says the Company.

The Kingfish Company further tells it continues to develop its expansion plans in the US and the Netherlands. 

"The Company expects to benefit from the scaling effects, and further improvement in operations and productivity in the Netherlands will drive profitability and moving towards positive cash flow. The Company is closely monitoring the development of its liquidity position to ensure that it remains fully financed to sustain the current growth trajectory."