Arctic Fish (AFISH) Q2 2024 earnings summary

Executive summary

• Achieved best first half in company history for operational EBIT and EBIT per kg, driven by increased harvest volumes and improved biological performance.

• Harvested 1,275 tonnes in Q2 2024, up from 100 tonnes in Q2 2023, stabilizing operations and costs.

• All processing now occurs at a new, state-of-the-art facility, with sales handled by Mowi since September 2023.

• Revenues rose to EUR 11.6 million in Q2 2024, compared to EUR 1.3 million in the prior-year period, mainly due to higher volumes.

Financial highlights

• Operational EBIT reached EUR 2.3 million, a significant improvement from EUR -0.8 million in Q2 2023.

• Operational EBIT margin improved to 20.0% from -63.3% in Q2 2023.

• Net loss for Q2 2024 was EUR -4.1 million, impacted by a negative EUR 4.4 million fair value adjustment on biomass due to lower forward prices.

• Net interest-bearing debt increased to EUR 118.6 million at quarter-end, up EUR 6.3 million from Q1 2024, mainly due to negative operational cash flow and working capital build-up.

• Equity at quarter-end was EUR 87.5 million, with an equity ratio of 37.5%.

Outlook and guidance

• Harvest volume guidance for 2024 maintained at 10.1 thousand tonnes, 15% below 2023's record 11.9 thousand tonnes.

• Long-term growth objective remains optimal utilization of existing license capacity.

• CAPEX remains minimal, with only minor investments; smolt expansion is still restructuring after a fire in early 2023.