Q1 ’22 Business update and annual report 2021
Q1 ’22 highlights
Driven by continued strong demand for sustainably grown Yellowtail Kingfish in Europe and the US, The Kingfish Company [Euronext: KING] more than doubled sales from €1.5 million in Q1 ’21 to €3.7 million in Q1 ’22, while prices continue to increase
Produced a record of 340 tonnes net growth of high-value Yellowtail Kingfish in Q1 ’22, resulting in solid productivity index performance of 0.68 (net biomass growth per cubic meter capacity per day)
Secured a bilateral loan facility of up to EUR 75 million with P Capital Partners AB; the company is now fully funded to reach group-level cash flow positive.
“We have come off to a good start of 2022, seeing demand for our fish continuing to outstrip capacity, productivity continuously improving, and with a five-year ESG linked financing arrangement in place we have secured funding to reach 3,500 tonnes of capacity in the Netherlands”, said Ohad Maiman, CEO of the Kingfish Company.
Driven by strong demand for high-value kingfish in Europe and the US, sales grew 149 percent to €3.7 million in Q1 ’22 and 130 percent in whole fish equivalent (WFE) tonnage to 319 tonnes. An average sales price increase resulted in €11.5 per WFE kg on overall sales, compared with €11.2 in the previous quarter. The average realized price of large fish improved from €13.1/kg in Q4 ’21 to €14.6/kg in Q1 ’22. The price of small fish remained stable.
Full-year 2021 results came in above expectations with a doubling of sales and output
FY ’21 highlights
Doubled sales and output while average sales price increased in 2021
Doubled sales of whole fish equivalents (WFE) to 902 tonnes and improved productivity by 14% to 0.65 kg per cubic meter per day
Enhanced unit economics: farming operations delivered a gross margin of €2.2 per kg, an improvement compared to €-0.3 per kg in 2020. Direct production costs in euros per kg reduced by 9.3% and indirect production costs in euros per kg by 22.2%
“2021 has been another record year for The Kingfish Company driven by strong market demand for our high-value kingfish in Europe and the United States. We appreciate the strong execution by our dedicated team, and we are excited when we look at the years to come. We are now fully funded to reach group-level cash flow positive”, said Ohad Maiman, CEO of The Kingfish Company.
Revenue more than doubled from €5.0 million in 2020 to €10.4 million in 2021. The farming operations delivered a gross margin of €2.2 per kg. This is an improvement compared to €-0.3 per kg in 2020, and margins are expected to continue to improve as the company continues to scale up. Both direct and indirect production costs significantly decreased in euros per kg compared to last year. Overall, this resulted in a gross margin for the farming operations of 19.5% in 2021 compared with -2.9% in 2020. The company spent €0.3 million on US operations and €4.1 million on head office and G&A costs.
Funding in place to reach 3,500 tonnes annual capacity in the Netherlands and group-level cash flow positive
The Kingfish Company has entered into a Senior Facilities Agreement with P Capital Partners AB for a five-year ESG-linked bilateral debt facility of up to €75 million. The net proceeds from the Debt Facility will be used to repay existing debt, finance remaining capital expenditures in the Netherlands related to phase 2A and 2B on the Zeeland facility, and fund working capital. The Debt Facility also includes an additional uncommitted facility of €37.5 million to finance part of the capital cost for a future phase 3 build-out in the Netherlands.
Strong ESG performance in 2021 and clear ESG targets set for 2022 and beyond
Sustainability and respect to the fish and the environment are at the core of the company’s values, and inform design, operations, and technology decisions. Innovation, renewable energy, emission reductions, fish welfare, resource conservation, energy efficiency and environmental stewardship are diligently considered in the company’s business planning, implementation and management processes while driving environmental research and development.
“We support and develop environmental projects and partnerships in our communities and will continue to pursue environmental excellence and innovation in our corporate strategy and operations”, said Mr. Maiman.
RAS technology allows production facilities near its end-markets, minimizing transportation requirements and food waste. In 2021, The Kingfish Company is positioned to reach 600-700 million people within road delivery catchment area requiring no air freight. As a result, 92% of transport emissions were reduced using road freight versus airfreight.
In 2021, 0.49 MWh of solar energy was generated on site and 100% of electricity used came from renewable sources with guarantees of origin certified.
“We continue to manage our energy usage and saw a reduced energy use per ton of fish produced year-on-year. We will continue to work towards carbon emission reduction in everything we do”, said Mr. Maiman.
Kingfish Zeeland retained all its sustainability and quality certifications during 2021 and moved from 2* to 3* BAP certification and received ‘Raised without Antibiotics’ certification.
The Kingfish Company has clear ESG targets set for 2022 and beyond. The company will continue working towards 25 x 25 (our 2020 – 2025 impacts campaign), reducing carbon emissions to ultimately achieve carbon neutral status and contributing to climate action and conserving life below water.
The Kingfish Company has committed to:
reducing our carbon emissions per ton of growth by 25% by 2025
reducing residual waste created by our operation with 25% by 2025
increasing our recycling efforts by 25% by 2025
reducing our dependency on marine resources (Fish In Fish Out ratio) by 25% by 2025
For more information
Please see the attached Q1 and annual results 2021 business update presentation. The Kingfish Company will present the business update to investors, analysts, and media on Thursday April 21st, 2022, at 15:00 CEST. The online presentation will be followed by a Q&A session. Both will be hosted by the company’s CEO Ohad Maiman, CFO Christo du Plessis and COO Kees Kloet.
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About The Kingfish Company
The Kingfish Company is a pioneer and leader in sustainable land-based aquaculture. Current annual production capacity at its Kingfish Zeeland facility in the Netherlands is 1,500 tonnes of high quality and high value Yellowtail Kingfish.
Expansion is underway and capacity in the Netherlands will reach 3,500 tonnes in the second half of 2022. In the US, permitting for the company’s 8,500 tonnes capacity facility is progressing as planned.
Production is based on advanced recirculating aquaculture systems (RAS), which protect biodiversity and ensure biosecurity. Animal welfare is paramount, and the fish is grown without use of antibiotics and vaccines. Operations run on 100 percent renewable energy, sourced from wind, solar and biogas. The company’s facilities operate on sea water, avoiding wasting of precious fresh water.
The Kingfish Company’s main product at present, the Yellowtail Kingfish (also known as Ricciola/Hiramasa/Greater Amberjack) is a highly versatile premium fish species, well known in the Italian and Asian fusion cuisines.
Its products are certified and approved as sustainable and environmentally friendly by Aquaculture Stewardship Council (ASC), Best Aquaculture Practices (BAP) and British Retail Consortium (BRC). It was the winner of the 2019 Seafood Excellence Award, and it is recommended as green choice by Good Fish Foundation.
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The Supervisory Board (the "Board") hereby calls for an extraordinary general meeting of The Kingfish Company N.V., a limited liability company (naamloze vennootschap), having its statutory seat (zete