The Kingfish Company (KING) Q3 2024 TU earnings summary

Sales and Revenue Performance

• Sales volume increased by 37% year-over-year to 514 tons, with revenue up 28% to €7.3 million, driven by higher fresh fish sales and a favorable size mix.

• Revenue per kilo declined to €14.3 from €15.3, reflecting increased promotional activity and expansion into foodservice.

• Proportion of large-sized fish in the sales mix reached 54%, with a target to exceed 70% to improve margins.

• Gross margin per kg decreased to €2.9 from €4.3, reflecting higher costs and lower productivity.

• Share of large fish continues to rise, supporting strategic goals.

Operational and Cost Developments

• Production costs per unit increased temporarily due to lower production volume and active biomass management.

• Feed prices declined, but higher feed conversion ratio (FCR) impacted costs; feed formulation improved profitability.

• Energy prices remained stable but elevated, with energy costs up 44% year-over-year; optimization projects launched.

• Standing biomass at end of September was 1,063 tons, with production aligned to market demand.

• Installed capacity estimate increased to 4,000 tons per year.

Financial Position and Profitability Outlook

• Operational EBITDA per kg sold at -0.9 EUR in Q3 2024, with EBITDA loss for 9M 2024 improved 36% to €-1.5 million.

• Liquidity at the end of Q3 was €15 million, with €6.4 million in cash.

• Q3 cash usage was €3.3 million, including capex, interest, and inventory growth.

• Working capital increased, mainly due to higher inventory from biomass and frozen stock.

• Company expects to reach EBITDA and operational cash flow break-even by 2025, driven by volume growth, sales mix optimization, and scaling.