The Kingfish Company (KING) H1 2024 earnings summary

Executive summary

• Sales volume increased 36% year-over-year to 512 tons in Q2 2024, with revenue up 31% to EUR 7.3 million, and large fish making up 53% of sales versus 37% last year.

• Expansion into new food service distributors and retailers in Europe and North America is underway, with further growth expected.

• The Maine Superior Court and US appeals court upheld the municipal permit for the Jonesport farm, making it final; state permit outcome is pending.

• Operational EBITDA improved by 45% year-over-year, confirming progress toward profitability.

• Fully commissioned phase 2 grow-out facilities and launched new in-house processing facility in March 2024.

Financial highlights

• Revenue reached EUR 7.3 million in Q2 2024, up 31% year-over-year, and EUR 13.1 million for H1 2024, up from EUR 11.2 million in H1 2023.

• Sales volume grew 36% year-over-year in Q2 and 25% to 922 tons for H1 2024.

• Revenue per kilo decreased from EUR 14.8 in Q2 2023 to EUR 14.2 in Q2 2024, and to EUR 14.3 for H1 2024.

• Gross margin increased to 20.4% of revenue in Q2 2024 from 17.4% year-over-year.

• Operational EBITDA improved to EUR -1.0 million for H1 2024 from EUR -2.2 million, but net loss after tax widened to EUR -13.3 million due to higher depreciation and interest.

Outlook and guidance

• Sales and marketing team expansion will be completed within two months, expected to drive further sales growth.

• Production cost per kilo is expected to decline as operations return to optimal levels; Q3 costs to remain stable, with reductions anticipated in Q4.

• Focus remains on accelerating revenue growth, optimizing operations, and expanding sales and marketing to penetrate new and existing markets.

• Expects scaling effects and operational improvements in the Netherlands to drive profitability and positive cash flow.

• Expansion plans continue in the US and the Netherlands, with close monitoring of liquidity to support growth.