KINGFISH COMPANY CONTINUES GROWTH TREND

Kingfish Company continues growth trend

The Kingfish Company continues its growth trend with sales growing by 34% YoY to €5.0 million.

Key highlights were:

• Achieved continued high price level, particularly for large fish
• Net growth of 395 tons of high-value Dutch Yellowtail, reflecting another quarter of steady state at current installed capacity and record harvesting levels
• Strong productivity index performance of 0.78(net biomass growth per cubic meter capacity per day)
• Completed the equity raise, raising gross proceeds of approx. €35 million
• Propose Vincent Erenst as CEO, effective February 6th, 2023.

“We are proud of our team which has delivered five years of successful operational results with continuous improvements, confirming the name plate capacity of our facility. We have seen productivity increase with the third generation of fingerlings, increased size of fish, and no mass mortality events. We are now ready to launch capacity for phase 2 and we are delighted that we have started commissioning the hatchery in January”, said Hans den Bieman, interim CEO of The kingfish Company.

Market demand for high-value Dutch Yellowtail is strong in both Europe and the United States, and The Kingfish Company products are sold in 14 countries. In 2022, the company produced a record 1,511 tons of high value yellowtail kingfish. For the full year 2022, we increased sales by 82%. At the same time, the average sales price achieved increased by 14% to €13.1/WFE kg in 2022.

Solid sales during the fourth quarter 2022

Sales grew by 34 percent to €5.0 million in Q4’22 and 3 percent in whole fish equivalent (WFE) tonnage to 346 tons. Sales prices have increased significantly in Q4’22, particularly for large fish (+39% YoY) reaching an average price per kg WFE of €18.2, and for small fish (+16% YoY) at €12.0 per kg WFE. During the fourth quarter, the average size of large fish reached a record level, generating increased revenue and uplifting the average price. Demand continues to outpace our production capacity.

The Kingfish Company achieved 395 tons of net growth of high-value Yellowtail Kingfish in Q4 ’22, compared to 324 tons of net growth in the same quarter of last year (third quarter at full run-rate of current installed capacity). This has resulted in a robust productivity index performance of 0.78 (net biomass growth per cubic meter capacity per day), representing an improvement of 6% compared to Q3 ’22.

Expanding capacity to meet strong demand

While The Kingfish Company has reached full capacity run-rate in phase 1, it has started the production of fingerlings for the pre-stocking of Phase 2. Phase 2 production is set to commence in Q1’23. Commissioning of the hatchery has started in January. The significant volume increase is expected to result in material improvements to unit economics, building on an already strong basis.

In January 2023, The Kingfish Company has successfully completed an equity raise, raising gross proceeds of approximately €35 million through a private placement and a subsequent offering.

The US operation in Maine has obtained the local building permit from the Jonesport Planning Board in December, and is now fully permitted by Local, State and Federal regulatory agencies. The Company has successfully shipped broodstock to the US, and the fingerlings that were already shipped to the US are doing well and growing fast.

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