Proximar Seafood (PROXI) Q3 2024 earnings summary

Executive summary

• Achieved first harvest and sales of Atlantic salmon in Japan, securing premium prices about 10% above imported levels, with the Fuji Atlantic Salmon brand launch generating strong media attention and consumer enthusiasm.

• Facility construction and equipment installation nearly complete, with all major systems expected operational by end of 2024, enabling full focus on operations and sales in 2025.

• Production performance remains robust with low mortality and stable water quality, though growth was temporarily impacted by turbidity, now resolved with ozone system upgrades.

• Strong market enthusiasm in Japan, with high visibility in premium supermarkets and extensive media coverage.

Financial highlights

• First sales income reported at 145,000 NOK; average price achieved was 130 NOK/kg for trial harvest and 125 NOK/kg for ongoing sales, about 10% above imported benchmarks.

• Earnings before tax at minus 23.7 million NOK; after-tax result was minus 14 million NOK.

• Total assets at 1.7 billion NOK, with 114 million NOK in cash and 98 million NOK in inventory; equity at 470 million NOK.

• Additional funding secured: 40 million NOK from convertible bond sale and 75 million NOK in new loans for working capital.

• Operating expenses for Q3 were 14.8 million NOK, with 11.5 million NOK expensed for unutilized production capacity.

Outlook and guidance

• 2024 harvest expected at 80 tons, with 270 tons delayed to Q1 2025 due to customer requests and growth rates; combined 2024/25 harvest expected at 4,700 tons.

• Targeting full system utilization by 2027, aiming for 5,300 tons annual harvest.

• Confident in business case with expected EBIT cost of 68 NOK/kg at full production; EBIT profitability expected above 2,000 tons annual production.

• Exploring strategic alternatives, including a potential listing on the Tokyo Stock Exchange.