Benchmark (BMK) Q3 2024 earnings summary

Executive summary

• Q3 FY24 saw solid performance in Genetics and Advanced Nutrition, with Health segment streamlined and Ectosan Vet and CleanTreat business models transitioned, reducing losses and financial exposure.

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

• Adjusted EBITDA excluding fair value movement increased 15% to £4.6m, with margin improving to 15% from 12% in Q3 FY23, driven by Genetics growth and Health restructuring.

• Operating loss for Q3 FY24 was £6.5m, compared to £4.0m loss in Q3 FY23.

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

Financial highlights

• Q3 FY24 revenue: £30.7m (-10% YoY, -7% CER); Q3 YTD FY24 revenue: £110.9m (-17% YoY, -11% CER).

• Adjusted EBITDA (excl. FV movement): £4.6m (+15% YoY); margin improved to 15% (Q3 FY23: 12%).

• Adjusted operating loss ex FV movement reduced to £0.3m from £1.2m loss in Q3 FY23.

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

• Exceptional costs of £2.6m included strategic review and restructuring, with £0.6m write-off from an ISA incident.

Outlook and guidance

• Genetics expected to maintain good visibility of salmon egg deliveries, with continued progress in growth vectors.

• Advanced Nutrition to remain resilient despite ongoing softness in shrimp markets; positioned for recovery.

• Health business expected to be profitable and cash positive post-restructuring, underpinned by Salmosan Vet.

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

• Trading remains resilient despite soft Advanced Nutrition markets and Health reorganisation.