The Kingfish Company's facility in Kats, Zeeland, The Netherlands, in December 2023. The land-based yellowtail kingfish farmer has decided to concentrate its global hatchery activities at this facility.
Photo: The Kingfish Company.
When it presented its operational update for Q4 2024, The Kingfish Company said the expectation was for volume growth above 50%. In the trading update released today, we learned that the strong year-end holiday season finally drove that fourth-quarter sales volume growth to 62%.
Specifically, the Netherlands-based yellowtail farmer ended the year with sales volume reaching 556 tons, up from 343 tons in the fourth quarter of 2023. To achieve this, the aforementioned strong demand over the festive period was coupled with what it defines as "a well-executed go-to-market approach." Indeed, annual shipments exceeded 2,000 tons for the first time in the company's history, a milestone in its growth trajectory.
Growth in both retail and food service channels led Kingfish to reach new levels compared to previous years. Total Q4 revenues increased by 44% to EUR 7.5 million (USD 7.7 million) - they were EUR 5.2 million (USD 5.4 million) in Q4 2023 - while annual revenues reached EUR 28 million (USD 29.1 million), up 27% from EUR 22 million (USD 22.8) in 2023.
However, revenue per kg decreased to EUR 13.4 (USD 13.9), affected by seasonal promotions and the need to sell a larger quantity of smaller fish to adjust biomass.
The Kingfish Company's farm in Kats, Netherlands, was operating above optimal biomass levels. As announced in the December operational update, to address this situation, the company initiated a biomass reduction plan to bring standing biomass to approximately 800-900 metric tons over the next 4-6 months.
The remaining biomass will be sufficient to meet 2025 sales forecasts, Kingfish said, and the reduction will improve biological yield while reducing production costs.
The yellowtail kingfish farmer said this is a "one-time adjustment" that will result in a write-down of inventory in the fourth quarter 2024 financial statements but will not have a material impact on cash flow.
At the closing of Q4 2024, harvested volumes totaled 586 tons, with a net biomass growth of 641 tons. At year-end, standing biomass reached 1,118 tons.
In the trading update statement released today, The Kingfish Company highlighted that its expanded and modernized Dutch hatchery has been fully operational since January 2023, positioning it as the global leader in yellowtail kingfish breeding and hatchery technology.
The company reported that the fourth-generation broodstock at the Kats facility achieved a major milestone in Q4 2024, producing its first eggs six months ahead of schedule and announced that, given the large production capacity and technical capabilities of the hatchery in the Netherlands, Kingfish has decided to concentrate its global hatchery activities at its Zeeland facility.
"This strategic move ensures that future U.S. operations benefit from the advanced capabilities of the Dutch hatchery, maintaining high standards of quality, efficiency, and cost optimization," Kingfish said in the statement.
According to the note, the U.S. expansion plan, which includes the proposed Jonesport farm in Maine, remains unchanged and is awaiting the final outcome of the latest appeal. Today, the land-based yellowtail kingfish farmer said that the timing of the start of construction will be determined once favorable legal, economic, and financial conditions are in place, supported by the supply of next-generation fingerlings from the Dutch hatchery.
To support these operational and growth initiatives, last month, January 2025, The Kingfish Company successfully completed a EUR 14 million (USD 14.5 million) private placement that was fully underwritten at the time of its announcement last December.
Among the subscribers were such well-known names as Creadev International S.A.S. - which, at that moment, had recently sold its stake in the pioneering Spanish land shrimp producer Noray Seafood -, Rabo Participaties B.V., ASR Vermogensbeheer N.V., or Stolt-Nielsen M. S. Ltd., represented on the Board by Jordi Fita.
"The net proceeds from the private placement 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 and for general corporate purposes," Kingfish said in the same release in which it issued its Q4 2024 operational update.
The Netherlands-based yellowtail company will publish its full-year 2024 financial results and annual report on March 27, 2025.
