Multiexport Foods (MULTI-X) Q3 2024 earnings summary

Executive summary

• Q3-24 saw lower harvest weights and volumes due to growth challenges and a difficult ramp-up of RAS smolts, with strategic harvest postponement to Q1-25 and a downward revision of 2024 harvest volume guidance.

• Revenues and operational EBIT declined sharply year-over-year, impacted by weak US demand and lower market prices, though price achievement remained strong due to effective allocation and contracts.

• Revenue for the nine months ended September 30, 2024, was MUS$529,275, down 21% year-over-year, mainly due to lower sales volumes and prices in both fresh and frozen/processed products.

• Net loss attributable to owners for the period was MUS$7,548, compared to a profit of MUS$759 in the same period last year.

• The Humboldt project delivered higher-than-expected progress and significant cost savings, supporting operational improvements.

Financial highlights

• Q3-24 revenues were $188.8M, down 27% year-over-year; operational EBIT was $5.4M, down 59%.

• Net income before FV adjustment was -$3.5M, a 159% decline; reported net income was $5.9M.

• EBITDA for Q3-24 was $13.2M, down 35% year-over-year.

• Gross profit before fair value adjustments was MUS$37,667, down from MUS$82,155 year-over-year.

• Cash and equivalents at period end were MUS$31,495, up from MUS$29,709 at year-end 2023.

Outlook and guidance

• 2024 total harvest volume guidance revised downward due to strategic postponement; 2025E target set at 120k tons WFE.

• Management highlights ongoing market volatility and cost pressures, with continued focus on operational efficiency and risk management.

• Short-term focus on maintenance capex following operational consolidation.