Good operational performance and positive outlook in all business areas
Results affected by market factors in the period
In compliance with the terms of the Company’s unsecured green bond which requires it to publish quarterly financial information, Benchmark, the aquaculture biotechnology business, announces its unaudited results for the 3 months ended 30 September 2023 (the “period”). All Q4 FY23 and Q4 FY22 figures quoted in this announcement are based on unaudited accounts.
This morning the Company published its full year audited results for the 12 months ended 30 September 2023 which can be found on https://www.benchmarkplc.com/investors
Q4 FY23 Financial highlights
• Revenues from continuing operations of £36.6m, 14% below the prior year (-7% CER):
• Genetics – strong performance in salmon egg sales against an exceptionally strong Q4 FY22 which benefitted from supply constraints in the market; revenues were 6% below Q4 FY22 (+2% CER)
• Advanced Nutrition – strong performance against a backdrop of challenging conditions in the global shrimp markets; revenues were 9% below the prior year (-3% CER)
• Health – revenues were 53% below Q4 FY22 (-50% CER) reflecting a delay in the peak season for sea lice treatments in Norway; the Company has experienced an increase in Ectosan® Vet and CleanTreat® sales post period-end
• Adjusted EBITDA from continuing operations excluding fair value movements from biological assets £9.2m (Q4 FY22: £10.2m)
• Adjusted EBITDA margin from continuing operations excluding fair value movements marginally increased to 25% (Q4 FY22: 24%)
• Cash and cash equivalents of £29.3m and available liquidity of £41.5m as at 27th November
Operational highlights
• Launch of first AI-enabled tool, Snapp-Art which enables customers to count and qualify Artemia accurately and efficiently, contributing to customer productivity
• Integration of salmon activities under the leadership of Geir Olav Meningen, Head of Genetics, and integration and reorganisation of shrimp activities under the leadership of Patrick Waty, Head of Advanced Nutrition. This is an important strategic step which creates significant opportunities for commercial synergies and efficiencies
• Obtained MSC (Marine Stewardship Council) certification for the Artemia harvested from the Great Salt Lakes
• Divestment of tilapia breeding business; maintaining our presence in tilapia genetics through Genetics Services
Current trading and outlook – positive momentum trading in-line with management expectations
• Good start to the year and positive momentum in all business areas
• Good visibility of revenues in salmon genetics
• Early indications of improvement in the shrimp markets
• Increase in sea lice treatments post period end with good capacity utilisation of CleanTreat®; expect normal seasonality
• Continue to strengthen our unique position in an industry that is structurally growing driven by megatrends