Barramundi published its 2023 annual report, and the company's CEO, James Kwan, explained in it that things had not been positive this financial year. "Our business did not perform well in 2022, and key developments in early 2023 have not paid off. We found our group in extremely difficult times."
With pessimistic figures, he explained that the work of its various subsidiaries had been complicated. "The global macroeconomic outlook remains worrisome [such as Covid-19]. The ongoing conflict in Ukraine continues to affect us by [different related costs]".
The CEO expressed their determination to restructure the business, emphasizing that despite the negative data, Barramundi's products remain appealing to the market. It has undeniably been a challenging year for the company, as they have faced various issues along the way.
The Australian business has been one of the company's challenges. This is because, despite the agreements made in December 2022 to sell part of the business, it all evaporated in May when the buyers finally failed to raise financing. This resulted in a sudden and unexpected restructuring of the company's operations.
In Singapore, losses are estimated a EUR 21.6 million (USD 23.6 million) due to the biological difficulties experienced. "We harvested out our site in Semakau in 2022 and stocked a new site in St. John Island with fishing undergoing a vaccine trial together with a major international pharmaceutical company; which has been the primary pathogen leading to significant mortalities." Thus, he explained that the company decided to withstand the measures while a vaccine is efficacy.
Finally it is Brunei. That facility offers the most promising prospects for Barramundi Group as they have successfully grown and harvested table-sized fish both at sea and in their RAS facility located in Serasa. The biological outcomes have been positive, and the company acknowledges that these operations require additional funding. However, they have been actively working on securing the necessary funds since the beginning of this year. Currently, the situation in Brunei appears to be the most optimistic outlook for the company.
Barramundi Group delivers premium quality fish worldwide, prioritizing sustainability. Their mission revolves around addressing the global protein gap by harnessing the potential of Barramundi. The Group operates with comprehensive in-house capabilities ranging from vaccine development, end-product innovation, and processing, to hatchery facilities. They operate ocean farms in Australia, Singapore, and Brunei.