"Q4 2024 marked a significant period of progress for The Kingfish Company," CEO Vincent Erenst stated.
Photo: The Kingfish Company.
Just before Christmas, while announcing the agreement for a fully subscribed private equity placement of EUR 14 million, The Kingfish Company also presented its operational update for Q4 2024 reporting that the expectation is for volume growth above 50%.
Specifically, compared to the same period last year, in October, the Netherlands-based yellowtail farmer achieved volume growth of 56%, a percentage that in November increased to 61%. For December, the company expects another milestone to be set, with expected growth of more than 55%, which, Kingfish said, further solidifies a strong trajectory toward 2025.
After a "pivotal" 2023, The Kingfish Company started 2024 with record sales volume and nearing break-even in Q1. Good momentum continued with sales soaring in Q2, and again in Q3, when the company declared to be "on track to become profitable" after another solid quarter.
Now, the company said, driven by increased sales and marketing efforts, demand for Kingfish's sustainable yellowtail kingfish is clearly on the rise, and fourth-quarter sales volumes are projected to reach between 520 and 540 tons.
Likewise, The Kingfish Company reported that revenue per kilo for large fish is expected to remain resilient in the fourth quarter and that sales of small fish are supported by seasonal promotional activities which will have a temporary effect on revenue per kg.
"Q4 2024 marked a significant period of progress for The Kingfish Company, as we continued to accelerate sales growth with a volume increase exceeding 50%. This reflects the strong and growing demand for our sustainable Yellowtail Kingfish and the effectiveness of our sales and business development efforts," said CEO Vincent Erenst.
"At the same time, we are taking decisive steps to optimize our operations by adjusting biomass levels to restore operational efficiency and align production with demand. These actions, combined with the contemplated fully underwritten EUR 14 million equity raise and adjustments to our financing terms, will strengthen our ability to scale production toward full capacity and deliver on our strategic objectives for 2025 and beyond," he added.
As mentioned, in addition to talking about the capital increase - which, primarily, will be used to strengthen the company's resources to accelerate the sales ramp-up until full utilization of the farm capacity estimated at 4,000 tons per year - Kingfish took advantage of the presentation of its Q4 2024 operational update to also announce an operational adjustment to optimize the farm's performance.
"Over the past two quarters, the farm has operated with biomass levels exceeding optimal levels. Efforts to slow down production have had limited impact on the growth of the fish, while negatively impacting operational performance," the company explained.
To address this challenge, The Kingfish Company has decided to reduce biomass by 300 tons, targeting a standing biomass of approximately 800 metric tons by the end of Q1 2025. This volume will be sold through different channels. "The adjustment will better align production capacity with the 2025 orderbook and restore operational efficiency," it said.
The company is also confident that the reduction will positively impact key performance indicators, such as feed conversion rate and growth rates, allowing a return to the optimal levels achieved until the first quarter of 2024.
Kingfish added that this one-time adjustment will result in an exceptional inventory write-down of approximately EUR 1.8 million, which, pending auditor review, will be reflected in the fourth quarter 2024 financial statements. However, it claimed the measure will not have a significant impact on cash flow.
