Business update and annual report 2020

The Kingfish Company [Euronext: KING], a pioneer in sustainable land-based aquaculture, reported another productivity record in Q1 2021 as demand for its high-value yellowtail kingfish products continued to grow. Sales measured in whole fish equivalents for the quarter increased 92 percent year-over-year.

Full year 2020 results came in ahead of expectations, driven by strong operational performance, combined with sales volumes and price levels that remained at pre-covid levels through the year and strict cost control.

US site development and Phase 2 expansion in the Netherlands are advancing on track, while Phase 1B- bringing total installed capacity to 1,250 ton in the Netherlands- has commenced commissioning and is scheduled to complete stocking in Q2.

Commenting on the Q1 performance, Ohad Maiman, Founder and CEO of The Kingfish Company said:

“We are pleased with our first quarter performance and appreciate the strong execution by our dedicated team. We produced 228 tons of high-value Yellowtail Kingfish in the first quarter of 2021, setting another productivity record of 0.70kg (biomass growth per cubic meter per day). On the sales and marketing front, we delivered several strategic retail launches in Europe and in the US, with more exciting developments in the pipeline.”

Full-year 2020

Financial results for 2020 came in ahead of expectations, as a result of strong operational performance and the company’s effective response to fast changing markets. Sales volumes and prices remained at pre-covid levels, and design capacity was exceeded by 30 percent.

Revenues for 2020 was €4.97 million in line with the previous year. EBITDA was negative €3.54 million and net loss after tax was €3.6 million, reflecting the substantial scale-up of capacity that the company is currently undertaking in its expansion of the Netherlands site and development of its first US site in Maine.

Founder and CEO Ohad Maiman commented:

“When we founded the company in 2015 recirculating aquaculture system (RAS) technology was looked at with a healthy dose of skepticism, as is the case with almost any early stage technology. Thanks to the hard work and endless dedication of our team, by 2020 we have been able to demonstrate that with our design and operational protocols, we have crossed the Rubicon from an experimental to a proven and commercially viable production method.”

An analysis of the 2020 financials reveals that farming operations delivered a gross margin of €1.6 per kg produced on a unit economics basis. This is a significant improvement compared to €0.4 per kg in 2019, and margins are expected to continue to improve as the company continues to scale up.

2020 Netherlands expansion delivered, 2021 US development and next Netherlands expansion on track

Built during 2020, Phase 1B expansion in The Netherlands was completed as commenced stocking as planned in Q1 2021. This new system will be fully stocked by end of Q2 this year, marking the completion of the expansion to 1,250 tons installed capacity.

Ohad Maiman commented:

“We continue to expand with construction start on schedule for phase 2 that will more than double our capacity in Europe. Groundworks commenced in Q1 21, and major contractors have been secured for construction and key equipment. In the US, we are advancing on track with the development of our site in Maine. Permit applications have been filed, design work is in process and contractor selection is underway.”

The company’s CEO Ohad Maiman, CFO Christo du Plessis, and COO Kees Kloet will be presenting the results and answering questions from the audience in a live webcast at 15:00 CEST on Wednesday April 14. The team will also be available for interviews with media.