Blue Star Foods has announced its 2022 financial and operating results. The company grew 28% in revenues to $12.8 million, however, the net loss was $13.2 million. Despite the losses, the company is optimistic about the future, especially regarding its RAS (Recirculatory Aquaculture System) operations, which not only generated profits but are poised for expansion. John Keeler, Chairman and CEO of Blue Star, has said that 2022 was "a transition year" for them.
As said, in its 2022 results presentation, Blue Star Foods reported that thanks to an increase in poundage sold, its revenues were $12.8 million. This is $2.8 million more compared to $10.0 million in the previous year. However, this 28% increase in revenue was not enough to offset the net loss, which increased by $10.6 million to $13.2 million (including $9.7 million of non-cash impairment charges and one-time non-recurring expenses), compared to $2.6 million in 2021. At the end of 2022, the adjusted EBITDA loss was $3.5 million compared to $0.5 million in the prior year.
"2022 was a transition year for us, for as we increased revenue, but we had to deal with higher costs of goods sold and inflationary operating expenses", commented John Keeler, Chairman and CEO of Blue Star Foods. "With that said, we are very pleased with the progress of our RAS business. Our soft-shell crab RAS operations commenced in March 2022, generated close to $1.0 million in revenue and is poised for expansion".
"As we look forward in 2023, we believe we remain on track to restore our legacy business to pre-pandemic levels, with inflation cooling off our operating expenses and to advance to the next stage in the construction phase of our transformational soft-shell crab RAS facility. We look forward to providing updates on our progress", he concluded, optimistically.
Among the three business highlights the company points out in 2022, two relate to its RAS operations. Blue Star Foods reported the aquaculture license application for a new and expanded land-based salmon farm, and also the selection of HTH Engineering & Equipment LLC to build expanded RAS facilities for soft-shell crab, the species that seems to have given the company the most joy this year.
Blue Star Foods' RAS revenues increased to $1.4 million last year, of which, as the Chairman and CEO mentioned above, close to $1.0 million came from its soft-shell crab RAS operations which, despite delays, are now poised for expansion.
"While our RAS expansion plans are taking longer than previously expected, we have made efforts to identify capital resources, both from private (non-dilutive) and government sources and currently hope to execute upon those over the next few months. We strongly believe our planned RAS expansion will be a major differentiator for us and contributor to accelerate revenue growth and profitability", John Keeler concluded.
Headquartered in Miami, Florida, Blue Star Foods Corp. is an integrated ESG seafood company that processes, packages, and sells high-value seafood products. The company claims to use best-in-class technology in both resource sustainability management and traceability, as well as environmentally friendly packaging. It also owns and operates the oldest continuously operating RAS full grow-out salmon farm in North America, located in British Columbia.
