Benchmark (BMK) Q4 2024 earnings summary

Executive summary

• FY2024 was marked by significant change, including a strategic review and the sale of the Genetics business to Novo Holdings for up to £260m, expected to close in Q1 2025, enabling full debt repayment and a focus on Advanced Nutrition and Health.

• The divestment will simplify the company, reduce debt, and enable capital returns to shareholders.

• FY24 performance was resilient amid market headwinds, with cost control and streamlining efforts.

• Remaining focus will be on Advanced Nutrition and Health, both positioned for profitability and growth.

Financial highlights

• Group revenue for FY2024 was £147.7m, down 7% in constant currency year-over-year; continuing operations revenue was £90.4m, down 13% (-6% CER).

• Advanced Nutrition revenue grew 5% in constant currency to £75.9m, despite shrimp market headwinds.

• Health revenue declined 41% due to restructuring and exit of Ectosan Vet from the market; FY24 revenue was £14.5m.

• Genetics revenue fell 8% in constant currency, reflecting normalization after prior supply-driven uplift.

• Adjusted EBITDA (excl. fair value) was £28.9m, down 10% year-over-year; continuing operations adjusted EBITDA was £11.9m.

• Operating loss for the year, significantly impacted by £15.3m impairment, mainly from Health development costs.

• Q4 revenue was £36.8m, up 7% year-over-year; Q4 adjusted EBITDA was £6.9m, down due to lower gross margin and biological asset movements.

• Net finance expenses increased to £10.4m due to adverse hedging, forex losses, and higher deferred finance fees.

Outlook and guidance

• Post-divestment, the company expects a leaner structure, lower costs, and a focus on value creation in Nutrition and Health.

• Nutrition faces continued shrimp market challenges and a recent loss of a major Venezuelan customer, leading to a soft Q1, but expects gross margin recovery and improved profitability later in the year, supported by higher quality Artemia harvest.

• Health is expected to remain profitable and cash-positive, with ongoing efforts to relaunch Ectosan Vet and CleanTreat.

• Streamlining and cost savings from the new structure are expected to be realized by Q4 FY2025 and into FY2026.