Blue Star Foods has presented a brief commentary on the second quarter of 2023 (2Q2023) and its results for the first half of the year (1H2023). They show that although the company earned USD 3.5 million (EUR 3.2 million) in revenues, it had high expenses, including operating expenses, which resulted in a net loss of USD 3.4 million (EUR 3.1 million). Blue Star is already taking steps to reduce costs and improve its financial situation in the future.
"While our first half of 2023 revenue performance was not as high as expected, we have taken necessary steps to reduce our cash burn and improve the liabilities portion of our balance sheet." said John Keeler, Chairman and CEO of Blue Star. "We are pleased to report progress on the RAS side of our business, highlighted by our option to purchase land in South Carolina for our expansion. New business from prominent national retail brands such as Bloomin' Brands and Just Food For Dogs are gaining traction as we seek to recover our decline in revenue over the next twelve months. We look forward to the remainder of 2023 and look forward to providing updates on our progress."
Two of the aspects that have stood out the most in Blue Star's financial period are its level of revenue and its reduction in expenses. Revenues of over USD 3 million (EUR 2.8 million) continue to be a key part of the way in which the product is perceived, and the reduction in operating expenses indicates an increase in efficiency.
Among the data to be highlighted are the revenues of the RAS system that generated USD half million and the Gross Profit of USD 1 million (EUR 925 thousand) after deducting direct production costs.
Thus, although in this first half of the year, they need to improve in certain areas, they have had good financial performances on both sides.
However, there is also a financial part that needs to be improved for the next financial period. Firstly, there has been an operating loss of USD 1.1 million (EUR 1 million)), which implies that there is still work to be done to optimize operations. On the other hand, they have also provided figures that reveal a Net loss of USD 1.5 million (EUR 1.4 million).
The first half of the year saw revenues of USD 3.6 million (EUR 3.3 million), including the success of RAS, which provided solid revenues and a good gross profit of less than a USD million.
Nevertheless, there is indeed room for improvement, particularly in terms of operating and net losses. An operating loss indicates that, despite generating revenue, when all expenses are accounted for, the company still experiences losses. It's akin to the net loss but specifically related to operational costs. In this context, Blue Star incurred an operating loss of USD 2 million (EUR 1.9 million) and a net loss of USD 3.4 million (EUR 3.1 million) respectively.
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 British Columbia.
