Norcod (NCOD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached 86 million NOK, up 121% year-over-year, with a 34% reduction in operating loss to 47 million NOK compared to Q2 2023.

• Harvested volume increased 76% to 1,830 tons, driven by higher operational efficiency and improved cost structure.

• Transitioned to a commercialization phase, focusing on market development, product differentiation, and premium positioning.

• Measures initiated to streamline operations and enhance commercial focus.

• Additional credit and revised covenants increased financial and operational headroom.

Financial highlights

• Q2 operating revenues reached 86 million NOK, up from 39 million NOK in Q2 2023, a 120% increase.

• Production cost per kilo dropped from 77.4 NOK in Q2 2023 to 47.6 NOK in Q2 2024.

• Net loss for Q2 2024 was 57 million NOK, compared to 52 million NOK in Q2 2023.

• Interest-bearing debt rose to 120 million NOK, with current liabilities at 240 million NOK.

• Available credit and cash at hand totaled 42 million NOK at quarter-end, down from 139 million NOK a year earlier.

Outlook and guidance

• On track to harvest 8,500–9,000 tons in 2024 and forecast 10,000 tons for 2025.

• Break-even expected within 12–18 months, contingent on market and production factors.

• Focus remains on achieving profitability at the current annual production level of ~10,000 tons.

• Anticipates lower costs in 2025 from both feed price reductions and improved efficiency.

• Step-by-step volume growth planned in line with market demand and favorable sales prices.