Landbased yellowtail producer The Kingfish Company has reported strong growth in Q3 2024, highlighting its successful expansion efforts across customer segments and geographies, bolstered by targeted investments in sales and marketing, the company reported.
“Q3 2024 marks yet another quarter of robust growth, with a 37% year-over-year increase in volume sold, reaching 514 tons, and a 28% increase in revenue. I am pleased with our progress in expanding the sales and marketing team, which indeed is resulting in an increase in the number of customers and geographies," said CEO Vincent Erenst in a press release announcing the results.
"Our hatchery has also achieved a new milestone with the production of the first batch of fourth-generation fingerlings, a testament to 15 years of advancements in our broodstock program. We look forward to seeing a continuation of the improvement in performance of the fish," he added.
Looking ahead, the company said it was "on track to become profitable", and anticipated achieving break-even in both EBITDA and cash from operations by 2025.
The company’s revenue growth to €7.3 million from €5.7 million in Q3 2023, an increase of 28%, was driven by increased sales volume and targeted outreach, the company said.
During the third quarter, The Kingfish Company engaged food service clients through educational events and product demonstrations, enhancing brand recognition and highlighting the versatility of its premium yellowtail kingfish.
The Kingfish Company reported its standing biomass reached 1,063 tons by the end of September, as the company aligned production with market demand through growth control measures, which temporarily impacted productivity.
This balance resulted in an operational EBITDA of €-0.5 million for Q3 2024, slightly down from €-0.1 million in Q3 2023. However, The Kingfish Company reported a significant 36% year-to-date improvement in operational EBITDA, narrowing its loss to €-1.5 million, a step closer to profitability through optimized farm capacity and expanded sales.
As of September 30, Kingfish’s liquidity stood at €15.0 million, including €6.4 million in cash, €3.0 million in short-term deposits, and €5.6 million in available financing. Cash usage for Q3 amounted to €3.3 million, with €2 million directed toward interest payments following the company’s transition to cash-based interest settlements earlier this year. The Kingfish Company said it plans to carefully manage liquidity during this ramp-up phase to ensure funding through full farm utilization.
Kingfish has revised its production capacity estimates at its Netherlands facility, increasing its maximum annual output to 4,000 tons from 3,500 tons. This expansion stems from improvements in feed formulation, genetics, and operational procedures, in order to meet market demand, the company said.
With the introduction of the next-generation fish in 2025, The Kingfish Company said it anticipates enhanced growth rates and feed efficiency, further advancing its path to profitability.
"Our broodstock program initiated more than 15 years ago has reached a new milestone ahead of schedule, with the hatchery successfully producing the first batch of the next generation fish. These fish will be introduced in the farm progressively throughout 2025. This new fish generation shows promising potential, with projections indicating accelerated growth rates, improved feed efficiency, and overall superior quality," the company stated.
The Kingfish Company added that it is continuing to evaluate the timing of its expansion plans in the US and the Netherlands.
In September, the company recently signed an agreement with aquaculture engineering firm VAQ, to develop and design the pre-project concept for the Phase III expansion of The Kingfish Company’s production facilities in Zeeland, Netherlands.