Kingfish Company ‘approaching breakeven’
Land-based fish farmer The Kingfish Company says it is working its way to profitability, with financial results for the first quarter of this year it called “promising”.
The company raises yellowtail kingfish in its Netherlands facility and is building a second farm in Maine, USA.
Revenue increased by 5% to €5.9m (£5.08m), compared to €5.6m (£4.82m) in Q1 2023. This growth was primarily driven, the company said, by increased sales to the retail sector, while growth in the HORECA (hotels, restaurants and catering) sector is expected to accelerate with the start of the summer season. Total volume sold reached 410 tonnes, up from 363 tonnes in Q1 2023.
However, the average revenue per kilogram declined from €15.10 (£13) in Q1 2023 to €14.40 £12.39), 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.
Operational EBITDA was still slightly in the red, at -€300,000 (£258,000) compared with the Q1 2023 figure -€1.1m, £946,000).
Vincent Erenst, CEO of The Kingfish Company, said: “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.”
Vincent Erenst, CEO, The Kingfish Company
Biological performance continued to exceed expectations, with Kingfish achieving a biomass growth of 642 tons in the quarter, slightly higher than the 626 tonnes achieved in Q4 2023. The standing biomass reached 1,043 tons at the end of the first quarter.
The company explained: “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 metre per day (Q4 2023: 0.63 kg per cubic metre per day).”
New feed formulations, improved quality of the juveniles in combination with lower temperature, resulted in a reduction of the eFCR (feed conversion ration) to 1.26, a significant improvement compared to 1.42 in Q4 2023.
