Q2 2022 Business Update
Q2 2022 business highlights
Achieved an important milestone as The Kingfish Company is now EBITDA positive year to date for the Netherlands operation
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 €2.3 million in Q2 ’21 to €4.8 million in Q2 ’22
Average sales price increased by 12% YoY with the average realized price improving for both large and small fish
Produced a record of 402 tons net growth of high-value Yellowtail Kingfish in Q2 ’22, resulting in strong productivity index performance of 0.80 (net biomass growth per cubic meter capacity per day), an improvement of 18% compared to Q1 ’22.
“The second quarter of 2022 was a strong quarter for The Kingfish Company, seeing sales doubling, average sales prices increasing by 12% YoY, while achieving record production and sector leading productivity. Consistent with our growth plans, we have achieved an important milestone and are now EBITDA positive year to date for the Netherlands operation”, said Ohad Maiman, CEO of The Kingfish Company. (Text continues below picture)
Driven by strong demand for high-value kingfish in Europe and the US, sales grew 108 percent to €4.8 million in Q2 ’22 and 95 percent in whole fish equivalent (WFE) tonnage to 384 tons. The average sales price increased to €13.1 per WFE kg on overall sales, compared with €11.5 in the previous quarter. The average realized price of large fish improved from €14.6/kg in Q1 ’22 to €15.7/kg in Q2 ’22. The price of small fish increased from €10.0/kg in Q1 ’22 to €11.4/kg in Q2 ’22.
The Kingfish Company produced a record of 402 tons net growth of high-value Yellowtail Kingfish in Q2’22, compared to 340 tons in Q1 ’22. This has resulted in all time high productivity index performance of 0.80 (net biomass growth per cubic meter capacity per day), representing an improvement of 18% compared to Q1 ’22.
Phase 2 expansion in the Netherlands and permitting in Maine, US, entering its final stages
The Kingfish Company continues the expansion of its facilities in Europe with system installation and construction entering its final stage, and in the US, all state and federal permits have been secured for the planned new facility in Maine.
“We are pleased that we have received the US Army Corps of Engineers permit, which is the federal permit required for the new facility in Jonesport, Maine. We are now in the last phases of design and contractor bidding selection is underway in Maine. This quarter our hatchery team in Zeeland, the Netherlands, packed and transported 2,000 fingerlings to our new hatchery facility site in Maine, US. These in-house third generation Dutch Yellowtail represent some of the world’s most advanced genetic lines of selectively bred Yellowtail Kingfish, and carry The Kingfish Company’s mission and origin to make up part of our future broodstock as we grow in the United States”, Mr. Maiman said.
In Europe, the construction of EU phase 2 is nearing completion. As previously announced, system capacity being constructed has been upgraded from projected 1,750 tons to 2,000 tons per year, bringing total installed capacity in the Netherlands to 3,500 tons per year once completed.
“While having been able to avoid significant cost overruns in the first 1.5 years of construction, given current supply chain issues and inflation, we anticipate some additional cost and potential delays for the remaining work to completion. Strict cost control measures are in place to limit the impact of global market circumstances,” Mr. Maiman said.
For more information
Please see the attached Q2 2022 business update presentation. The Kingfish Company will present the business update to investors, analysts, and media on Thursday July 14th, 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 and CTO 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 tons of high quality and high value Yellowtail Kingfish.
Expansion is underway and capacity in the Netherlands will reach 3,500 tons in the second half of 2022. In the US, permitting for the company’s 8,500 tons 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.