The Kingfish Company has published its latest quarterly results, reaching a new record level of production as well as steadily growing sales and revenue.
The Netherlands-based kingfish farmer reported strong biological performance in addition to an "all-time high" biomass growth, in results presented today by CEO Vincent Erenst and CFO Jean-Charles Valette.
“We are pleased with our continued strong biological performance. In Q3, we continued to have excellent productivity and achieved an all-time high in biomass growth," Erenst said.
"With production costs moving favourably, and our steady growth in sales and revenue per kg, we look forward to the full completion of Phase 2 in December and our significant volume ramp-up."
During the third quarter of 2023, the company achieved productivity of 0.80 kg net growth per cubic meter per day, resulting in a new record level of production. During Q3, the company reached 637 tons of growth, up from 374 tons in the third quarter 2022, with standing biomass doubling to 751 tons. Since 2020, productivity has increased from 0.57 kg to 0.83 kg in the year-to-date 2023.
Biological performance continued to "exceed expectations", Erenst said, in part due to a significant improvement of the feed conversion ratio (eFCR) to 1.37 in Q3 2023 from 1.52 in Q3 2022.
Revenue is also on the up for the company, increasing year-on-year by 8.5% to € 5.7 million from € 5.3 million in Q3 2022. Revenue per kg was € 15.3 (Q3 2022: € 13.8 per kg), an increase of 11%.
Valette said that higher average sales price, a more favorable sales mix and lower production costs meant the The Kingfish Company gross margin increased by 57% during Q3, reaching €1.6 million (€4.3 per kg sold) compared to Q3 2023 from € 1.1 million in Q3 2022 (€ 2.8 per kg sold).
The "path to profitability" is now confirmed, Valette said, with operational EBITDA close to break-even in Q3 2023, at € -0.1 million in Q3 2023, compared to € -0.4 million during the same period last year. This translates to € -0.3 per kg sold, in contrast to € -1.1 in Q3 2022.
To support completion of its Phase 2 hatchery facilities, The Kingfish Company recently secured investments totalling EUR 32 million from a variety of sources, including Ocean 14 Capital.
Announcing the results, Erenst and Valette said they remained positive about the outlook for The Kingfish Company, describing "a clear path to profitability". Over the next months, they said, the focus will be "fully on growing production, optimizing operations, while dedicating particular effort to expand our customer base and increase sales."
The first of the new hatcheries came into operation during May 2023, with the company confirming 66% of its Phase 2 facilities are now in operation, meaning "scale effects are starting to materialize".
Once completed in December 2023, the newly-extended Kingfish facility will more than double its previous production capacity. This, combined with further operational and productivity improvements, is expected to enable The Kingfish Company to become profitable and cash positive in the near future.
In addition to the Zeeland project, The Kingfish Company is also continuing to develop expansion plans in the US and Europe, Erenst said in the Q3 presentation.
Looking ahead, The Kingfish Company is seeking to develop new markets, mainly in Europe and North America, and says it plans to increase investments in business development activities over the coming quarters.
The Kingfish Company is a pioneer and leader in sustainable land-based aquaculture whose main product is the yellowtail kingfish (Seriola lalandi). Its production – where animal welfare is prioritized, and fish are raised without antibiotics or vaccines – is based on recirculating aquaculture systems (RAS), which protect biodiversity and ensure biosecurity. Its products are certified by the Aquaculture Stewardship Council (ASC), Best Aquaculture Practices (BAP), and British Retail Consortium (BRC). They have operations in the Neederlands, Kingfish Zeeland, and the United States, Kingfish Maine.