Q3 2022 Business Update
Q3 2022 business highlights
The Kingfish Company [Euronext: KING] continues its growth trend with sales nearly doubling from €2.8 million in Q3 ’21 to €5.4 million in Q3 ’22, driven by continued strong demand for sustainably grown Yellowtail Kingfish in Europe and the US
Achieved sound price increase in Q3 ’22, particularly for large fish (+25% YoY) reaching an average sales price per kg WFE of €17.1, and for small fish (+14% YoY) at €12.1 per kg WFE
Produced 374 tons of net growth of high-value Yellowtail Kingfish in Q3 ’22, reflecting the fourth quarter of steady state at current installed capacity
Solid productivity index performance of 0.73 (net biomass growth per cubic meter capacity per day).
“The third quarter of 2022 was another solid quarter for The Kingfish Company, where we have stabilized at full capacity run-rate for phase 1. We are now ready to launch capacity for phase 2, which is nearing completion. We are pleased to report another quarter with strong sales growth, significant sales price increases, particularly for large fish, while achieving robust steady production and consistently high productivity”, said Ohad Maiman, CEO of The Kingfish Company.
Driven by continued strong demand for high-value kingfish in Europe and the US, sales grew by 90 percent to €5.4 million in Q3’22 and 69 percent in whole fish equivalent (WFE) tonnage to 392 tons. Sales prices have significantly increased in Q3’22, particularly for large fish (+25% YoY) reaching an average price per kg WFE of €17.1, and for small fish (+14% YoY) at €12.1 per kg WFE. Demand continues to outpace our production capacity.
The Kingfish Company produced 374 tons of net growth of high-value Yellowtail Kingfish in Q3 ’22, compared to 334 tons of net growth in the same quarter of last year (first quarter at full run-rate of current installed capacity). This has resulted in a robust productivity index performance of 0.73 (net biomass growth per cubic meter capacity per day), representing an improvement of 11% compared to Q3 ’21.
Phase 2 expansion fully financed
Despite difficult market conditions, The Kingfish Company is raising €35 million through an equity raise, which is fully subscribed and guaranteed for all three tranches. The equity raise together with the remaining net amount on the PCP facility, a new revolving credit facility of EUR 5 million, a new lease facility with an EUR 3.5 million framework, and available cash is estimated to fully finance the Phase 2 capex with a buffer. The additional funds would also be available for biomass build up and general corporate purposes.
While The Kingfish Company has reached full capacity run-rate in phase 1, it has started the production of fingerlings for the pre-stocking of Phase 2. Phase 2 production is set to commence in early Q1’23. The significant volume increase is expected to result in material improvements to unit economics, building on an already strong basis.
Development of the Company’s US operation in Maine has secured all State and Federal permits, with only local town planning board permit remaining and in advanced stages, paving the way toward an 8,500 ton Phase 1 construction. In the third quarter, the company’s site in Jonesport received the community support to proceed with its application as town residents overwhelmingly voted down a proposed moratorium on aquaculture projects. In parallel, the Company has shipped 3rd generation fingerlings to its US hatchery, to serve as future brood stock for the US operation.
For more information
Please see the attached Q3 2022 business update presentation. The Kingfish Company will present the business update to investors, analysts, and media on Wednesday October 19th, 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 Jean-Charles Valette, 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 approximately 3,500 tons in the first half of 2023. 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.