Proximar Seafood (PROXI) Q2 2024 earnings summary

Executive summary

• Approaching first harvest in September 2024 after nearly a decade of planning, with stable production, low mortality, and positive feedback on fish quality.

• Unique position as the only domestic Atlantic salmon supplier in Japan, securing a first-mover advantage and a 10-year sales and distribution agreement with Marubeni.

• Strong market interest, high activity in sales and marketing, and first sales agreement secured at a premium to import benchmark.

• Facility in Japan operational with 2 of 4 modules active; remaining modules to be completed in Q3 and Q4 2024.

• Workforce expanded to 45 employees, with internal training programs and additional staff joining for harvest operations.

Financial highlights

• No revenue recognized in Q2 2024; quarterly loss of NOK 31.8 million after tax, in line with increased operational activity.

• Total assets at NOK 1,376 million, with equity at NOK 414 million and non-current liabilities at NOK 934 million by end of June.

• Cash and bank deposits at NOK 53.4 million as of 30 June 2024; inventory/biological assets at NOK 55 million.

• Additional CAPEX of approximately NOK 30 million expected in H2 2024 for facility completion and improvements.

• Fair value adjustment decreased operating expenses by NOK 8.1 million in Q2.

Outlook and guidance

• First harvest scheduled for September 2024, with 350 tonnes expected in 2024 and combined 2024–2025 harvest of ~4,700 tonnes (HOG).

• Production target of 5,300 tonnes (HOG) by 2027 remains unchanged.

• EBIT profitability expected at production above 2,000 tonnes (HOG); cost per kilo targeted at 70 NOK at full capacity.

• Considering strategic alternatives, including potential listing on Tokyo or Oslo Stock Exchange.

• Ongoing sales dialogues expected to result in additional contracts in coming months.