Multiexport Foods (MULTI-X) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was USD 174.9 million, down 15.5% year-over-year, driven by a 15.8% drop in Atlantic salmon sales volume, partially offset by higher average sales prices.

• EBIT for Q2 2024 was USD 7.9 million, a decrease of USD 8.1 million year-over-year, with EBIT margin per kg at USD 0.36 (down from USD 0.62 in Q2 2023).

• Net loss before fair value adjustment was USD -8.4 million, compared to a net profit of USD 7.5 million in Q2 2023.

• The company faced higher production costs, mainly due to increased feed prices and inflationary pressures on inputs and services.

• A fire at the Entrevientos S.A. processing plant (50% owned) in February 2024 resulted in a USD 9.4 million non-operational loss provision, with insurance claims in process.

Financial highlights

• H1 2024 revenue was USD 340.5 million, down 17.4% year-over-year, mainly due to lower sales volumes.

• H1 2024 EBIT was USD 6.9 million, down from USD 42.3 million in H1 2023.

• H1 2024 EBITDA was USD 22.1 million, compared to USD 55.3 million in H1 2023.

• Net loss attributable to shareholders in H1 2024 was USD -10.6 million (USD -0.0075 per share), versus USD -1.0 million in H1 2023.

• Cash and equivalents at June 30, 2024 were USD 35.8 million, up from USD 29.7 million at year-end 2023.

Outlook and guidance

• The company expects continued cost pressures from feed and other inputs, with market prices for salmon remaining volatile.

• No specific quantitative guidance provided, but management highlights ongoing focus on operational efficiency and risk mitigation.