PROMISING START TO THE YEAR FOR THE KINGFISH COMPANY

Promising start to the year for The Kingfish Company
The Kingfish Company N.V., a pioneer and leader in sustainable land-based production of yellowtail kingfish, has announced its first quarter 2024 financial results.
“The first-quarter financial results indicate a promising start to the year, with an increase in sales volume, and operational EBITDA closing in on break-even. Our primary focus this year is on further development of sales and operations; we are expanding sales to both existing and new clients in Europe and North America, while simultaneously exploring new markets for our Yellowtail Kingfish. We will also work with our team on further improvement of operational efficiency,” said Vincent Erenst, CEO of The Kingfish Company.
A company statement said: “The biological performance continued to exceed expectations, achieving a biomass growth of 642 tons in the quarter, slightly higher than the 626 tons achieved in Q4 2023. The standing biomass reached 1,043 tons at the end of the first quarter. As we have almost reached the maximum carrying capacity of our installations, we proactively manage growth. This explains the lower productivity of 0.57 kg per cubic meter per day (Q4 2023: 0.63 kg per cubic meter per day). New feed formulations, improved quality of the juveniles in combination with lower temperature, resulted in a reduction of the eFCR to 1.26, a significant improvement compared to 1.42 in Q4 2023.
“Revenue increased by 5% to €5.9 million, compared to €5.6 million in Q1 2023. This growth was primarily driven by increased sales to the retail sector, while growth in the horeca sector will accelerate with the start of the summer season. Total volume sold reached 410 tons, up from 363 tons in Q1 2023. However, the average revenue per kilogram declined from €15.1 in Q1 2023 to €14.4, attributed to intensified promotional activities in retail. Despite facing increased price competition in the US frozen market, sales volumes in North America experienced significant growth, alongside positive performance in Italy, France and Spain.
“As we continued to ramp-up production and sales to fully utilize the Phase 2 capacity, the Company made significant progress towards reaching profitability, with a 90% increase in gross margin per kg to €4.6 (Q1 2023: €2.4 per kg).
Sales and marketing expenses saw a 46% increase compared to Q1 2023, driven by intensified activities aimed at accelerating the penetration of Yellowtail Kingfish in our key markets and exploring new promising markets. Despite these investments, the Company is approaching operational EBITDA break-even. The operational EBITDA loss narrowed substantially in the quarter by 80% to €-0.3 million (compared to Q1 2023: €-1.1 million).
“On March 31, 2024, the Company maintains liquidity of €26 million, comprising €20 million in cash and short-term deposits, along with €6 million in financing facilities. Cash usage in the first quarter amounted to €5.2 million. Capex spent in the period amounted to €1.2 million, while inventory increased by €2.5 million. The biomass increased by 76 tons compared to the end of December 2023 and is now approaching the optimal volume. Frozen inventory increased by €1.2 million in the period.
“The €75 million Phase 2 financing facility from PCP has been fully drawn down in the period and the Company has started paying interest in cash. Net debt (IFRS) stood at €84.6 million, reflecting an increase of €7.5 million compared to the €77.1 million reported on December 31, 2023.
“As The Kingfish Company continues to navigate through its growth journey, we are excited about the potential that lies ahead. The Company is focusing on accelerating revenue growth, while optimizing operations and is investing significantly in sales and marketing to accelerate the expansion of its customer base and develop existing and new markets.
“Whereas the current main priority is on optimizing the operations in the Netherlands, the Company also continues to develop expansion plans in the US and the Netherlands. The Company expects to benefit from the scaling effect and further improvement in operations and productivity to become profitable and cash positive.
The Company is closely monitoring the development of its liquidity position and is focused on ensuring that it remains fully financed to sustain the current growth trajectory.”