The Kingfish Company (KING) Q3 2024 TU earnings summary

Sales and Revenue Performance

• Sales volume increased by 37% year-on-year to 514 tons, and revenue rose 28% to €7.3 million, driven by higher fresh fish sales and a favorable size mix.

• Revenue per kilo declined to €14.30 from €15.30, reflecting increased promotional activity and expansion into foodservice.

• Proportion of large-sized fish in the sales mix reached 54%, with a target to exceed 70% to improve margins.

• Gross margin per kilo decreased to €2.9 from €4.3 due to higher costs and lower productivity.

• Focus on food service customers, with educational events and product demos to boost brand recognition.

Operational and Cost Developments

• Production costs per unit increased temporarily due to lower production volume and active biomass management.

• Feed prices declined and feed formulation improved, supporting profitability.

• Energy prices remained stable but elevated; an energy optimization project was launched to reduce costs.

• Growth control measures led to a temporary decrease in productivity and higher feed conversion ratio.

• Operations run on 100% renewable energy, with strong sustainability certifications.

Financial Position and Profitability Outlook

• Operational EBITDA for Q3 was €-0.5 million, with EBITDA per kilo at minus €0.90, and 9M 2024 EBITDA loss improved 36% to €-1.5 million.

• Liquidity at the end of Q3 was €15 million, including €6.4 million in cash, with low CapEx in Q3 and higher spending expected in Q4.

• Working capital increased, mainly due to higher inventory from biomass and frozen stock.

• Company expects to reach EBITDA and cash from operations break even by 2025, supported by increased sales and full farm utilization.

• Installed capacity estimate increased to 4,000 tons annually, up from 3,500 tons.