Atlantic Sapphire (ASA) Q4 2024 earnings summary

Executive summary

• Achieved stable operational improvements in 2024, including reduced fish mortality, enhanced farming conditions, and improved water quality, supporting higher biomass gain and premium pricing.

• Completed industrialization and systemization in Florida, focusing on maximizing harvest biomass and average weight to drive profitability.

• Focused on de-bottlenecking, maintenance, and cost efficiency initiatives to unlock full Phase 1 capacity and support future expansion.

• Revenue increased to USD 22.8m in 2024 (from USD 14.0m in 2023), driven by higher harvest volumes and improved price achievement on premium fish.

• Strategic focus remains on US operations, with Danish assets under consideration for divestment.

Financial highlights

• Revenue rose to USD 22.8m in 2024, up from USD 14.0m in 2023, reflecting increased harvest volume to 4,365 tons from 1,545 tons.

• Biomass gain reached 5,500 tons in 2024, with improved fish size and quality supporting higher premium sales.

• Net loss widened to USD 167.3m (from USD 133.8m), mainly due to a USD 73m impairment on non-current assets reflecting increased Phase 2 construction costs.

• SG&A costs rose year-over-year, mainly from management transition and higher insurance expenses.

• Ended 2024 with USD 29.4m in operating cash and USD 15.2m in restricted cash.

Outlook and guidance

• Targeting full utilization of Phase 1 through continued de-bottlenecking, aiming for increased harvest weights, improved bFCR, and cost reductions.

• EBITDA break-even expected at 5,000t annualized harvest, with optimized Phase 1 targeting 7,500-8,000t and EBITDA of USD 1.5-2.0/kg.

• Medium-term ambition is to reach 33 tons of feed per day and achieve 80-90% of harvest at premium pricing, targeting USD 12/kg.

• Maintenance overhaul aims to shift from corrective to preventive, reducing future costs.

• No specific CapEx or working capital guidance for 2025, but further project execution and volume growth anticipated.