Benchmark (BMK) Q3 2024 earnings summary

Executive summary

• Q3 FY24 saw solid performance in Genetics and Advanced Nutrition, while the Health segment was streamlined and transitioned to a less capital-intensive model, supporting break-even adjusted EBITDA.

• Group revenues for Q3 FY24 were £30.7m, down 7% year-over-year at constant exchange rates and 10% on a reported basis, mainly due to lower Genetics and Health revenues.

• Adjusted EBITDA (excluding fair value movements) increased 15% year-over-year to £4.6m, with margin improving to 15% from 12% in Q3 FY23.

• Health business area restructuring and transition of Ectosan Vet and CleanTreat reduced costs and positioned the segment for profitability.

• Strategic review, including a potential sale process, remains ongoing, incurring exceptional costs.

Financial highlights

• Q3 FY24 revenue: £30.7m, down 7% at constant exchange rates and 10% year-over-year; YTD revenue: £110.9m, down 11% at CER.

• Adjusted EBITDA (excluding fair value): £4.6m, up 15% year-over-year; margin at 15% (Q3 FY23: 12%).

• Adjusted operating loss reduced to £0.3m from £1.2m year-over-year.

• Net debt at 30 June 2024: £75.1m; cash of £17m and total liquidity of £34.2m.

• Exceptional costs of £2.6m in Q3, mainly from strategic review, restructuring, and a biomass write-off.

Outlook and guidance

• All business areas are expected to reach profitability and deliver shareholder value in the near and long term.

• Genetics has good visibility on salmon egg deliveries for the rest of the year, though expected to end just below last year.

• Advanced Nutrition is expected to remain in a soft market for the rest of the year but is well positioned for recovery.

• Health business area is now cash generative and expected to remain profitable post-restructuring, with future growth dependent on customer investment.