Benchmark (BMK) Q4 2024 earnings summary

Executive summary

• Completed a strategic review resulting in 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 business will now focus on advanced nutrition and health, both positioned to be profitable and cash-generative.

• FY24 marked by resilient performance amid market headwinds, with cost control and streamlining initiatives.

• Proceeds from the genetics sale will be used to repay debt and return significant capital to shareholders.

Financial highlights

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

• Advanced nutrition revenue grew 5% at constant exchange rates, while health revenue declined 41% and genetics revenue fell 8%.

• Adjusted EBITDA (excluding fair value) was £28.9m, down 16% (-10% CER); continuing operations Adjusted EBITDA £11.9m, down 30% (-24% CER).

• Adjusted operating loss of £5.9m (FY23: £13.1m profit); continuing operations adjusted operating loss £16.6m (FY23: £1.2m profit).

• Q4 group revenue was £36.8m, up 7% year-over-year at constant exchange rates; Q4 adjusted EBITDA was £6.9m, down from last year.

Outlook and guidance

• Post-disposal, focus on Advanced Nutrition and Health with simplified structure and cost savings expected to fully materialize by FY26.

• Advanced Nutrition expects continued challenging shrimp market conditions in early FY2025, with a soft Q1 anticipated.

• Gross margin recovery is expected during the year as higher quality Artemia inventory is utilized.

• Health business is positioned for profitability and cash generation, with ongoing efforts to relaunch EctoSan Vet and CleanTreat on less capital-intensive platforms.

• Streamlining and cost-saving measures will be completed by end of Q3 FY2025, with benefits expected in Q4 and FY2026.