Atlantic Sapphire is prepared to face the current complex moment after evaluating its results, financial situation, and commercial strategy following its results for the first half of the 2023 (1H2023).
This 1H2023 the company has gone through a complicated financial environment. The data adds up to a net loss of USD 48.4 million (EUR 44.9 million), significantly above the previous year's (1H2022) loss of USD 14.5 million (EUR 13.5 million) incurred in the same period last year.
The company explained these figures are due to a USD 25.3 million (EUR 23.5 million) insurance settlement windfall benefit in the prior period due to the 15 September 2021 Denmark Bluehouse fire. As a result, this time around, the company faced lower harvest volumes, higher operating costs, and financial expenses, such as mortality write-downs and underutilization of production capacity at the U.S. Phase 1 facility.
Revenues were also no better than the previous year, down USD 1.6 million (EUR 1.5 million). Atlantic Sapphire explained that the decline in revenue was largely attributed to a decrease in the volume of fish caught.
Furthermore, operational challenges and a strategic decision to focus on strengthening the permanent biomass contributed to this decline. The only silver lining has been that higher fish prices have mitigated the negative effects.
However, despite the financial turbulence, Atlantic Sapphire remains positive. In the financial report, they explained that they anticipate gradual increases in biomass gain and harvest volumes. They also plan to address cooling issues and continue to offer premium prices for their products.
Thus, the company's capital and risk management focused on efficiently utilizing its capital base to support its operations and future development. It has raised capital through capital increases and interest-bearing loans. In 2Q2023, it obtained a waiver from its lender for failure to meet certain financial conditions.
Atlantic Sapphire is a pioneering land-raised salmon farming with a strong focus on R&D and innovation. Thus, they have been operating its innovation center in Denmark for ten years. In the United States facility at Homestead, Florida, they have completed Phase 1 construction. Its Phase 2 expansion will bring the total annual production capacity to 25,000 tons. Its trademark Bluehouse® enables the Company to commercially scale up production in end markets close to the consumer. Their brand is Bluehouse Salmon.