1H2023 Barramundi Group: “The road to recovery will remain challenging”

Barramundi Group has released its results for the first half of 2023 (1H2023) which predicts a slow but progressive recovery.
Barramundi fish in ice. Photo by: Adobe Stock.
Barramundi fish in ice. Photo by: Adobe Stock.

Barramundi Group has released its results for the first half of 2023 (1H2023), with a statement from CEO James Kwan indicating that "the road to recovery will remain challenging, with obstacles." The company has faced controversies recently, including sudden changes in the board of directors and the cancellation of negotiations. However, Kwan explains that "as more critical issues surrounding the business have slowly been addressed and resolved in the past six months," the next steps are on track and involve increasing the capacity to work on strategic and tactical priorities to stabilize revenues in the coming months.

The failed sale and a new strategy

Following the unsuccessful sale of Australian assets to Wild Ocean Australia, the company placed the businesses under Voluntary Administration, leading to Tassal's acquisition of MPA on end of July. This marked a shift in the company's focus. Barramundi explained that the effort was now directed towards strengthening other core aspects of the business. With a plan to aggressively streamline operations and prioritize crucial pillars of the business, they achieved significant cost savings -over SGD 5.3 million (EUR 3.6 million / USD 3.9 million) semiannually- without the need to boost Australian operations.

Another change implemented in Singapore and Brunei involved the efforts to simplify the organizational structure and operational processes. These changes resulted in a notable reduction in administrative expenses in both countries, positively impacting liquidity. Furthermore, the company implemented a constant assessment and enhancement of inventory turnover to further enhance efficiency.

The Group's Small Victories and Ambitious Goals

The investment in Allegro Aqua has enabled ongoing enhancements and the genetic selection of high-quality broodstock. Well-known institutes, funded at the national level, have actively forged collaborations, establishing a second broodstock nucleus to support future initiatives, known as BG2.0.

UVAXX, the company specializing in autogenous vaccines and fish health, is at the forefront of autogenous vaccine development for barramundi and other tropical fish species. Its unique position as a provider of these vaccines in Southeast Asia has garnered significant interest and opportunities. Even a multinational pharmaceutical company has partnered with UVAXX to conduct diagnostics using its laboratory, hinting at a future as an independent entity and a growing business.

Finally, the Kühlbarra and Fassler product brand continues to maintain its premium and solid position in the market. The product range has expanded with Kühlbarra Productos Allied Farm, sourced from selected farms that share commitments to safety and sustainability in fish farming. These efforts support the brand's presence in the market and strengthen its position in the industry.

The BG2.0 Plan

This plan aims to reposition the group as a leader in barramundi production. They are planning to announce details of this project, including a capital expansion soon. This marks a significant step towards realizing the group's vision.

About Barramundi Group

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. Moreover, they operate ocean farms in Australia, Singapore, and Brunei.

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