Kingfish Company sees revenue – and losses – up in Q3
Land-based aquaculture business The Kingfish Company has continued to ramp up its production, with volume up and revenue up year-on-year and the capacity of its plant revised upwards from 3,500 tonnes to 4,000 tonnes. Its operating profit moved in the wrong direction, however.
The company produces yellowtail kingfish in its recirculating aquaculture system (RAS) facility in Zeeland, in the Netherlands, and is in the process of developing another farm site in the US state of Maine.
CEO Vincent Erenst said: “Q3 2024 marks yet another quarter of robust growth, with a 37% year-over-year increase in volume sold, reaching 514 tons, and a 28% increase in revenue. I am pleased with our progress in expanding the sales and marketing team, which indeed is resulting in an increase in the number of customers and geographies.
“Our hatchery has also achieved a new milestone with the production of the first batch of fourth-generation fingerlings, a testament to 15 years of advancements in our broodstock program. We look forward to seeing a continuation of the improvement in performance of the fish.”
Vincent Erenst, CEO, The Kingfish Company
The increase in estimated capacity of the Zeeland plant is attributed to enhancement of growth of the fish as a result of feed formulation, genetic improvements and further refinement of operational procedures.
Financially, the company has recorded revenue of €7.3m (£6m) for the quarter. Profitability has fluctuated, however. The first nine months of 2024 saw an operating loss or EBITDA (earnings before interest, taxation, depreciation and amortisation) of -€1.5m (£1.25m), which represented substantially reduced losses compared with the same period in 2023, €-2.3m (£1.9m). For Q3 this year, however, operating losses were up to €-0.5m (£0.4m) compared with €-0.1m(£0.08).
The company’s explanation for this is based on two factors: the cost of sales and marketing, to achieve the increased volume seen in Q3, and changes in the biomass.
The Q3 update states: “As of the end of September 2024, standing biomass was 1,063 tons, compared to 1,075 tons at the end of June. While managing biomass at near-maximum capacity, we continued to align production with market demand, implementing growth control measures. This led to a temporary decrease in productivity, with growth averaging 0.50 kg per cubic meter per day (Q2 2024: 0.56 kg per cubic meter per day), and an increase in eFCR (food conversion ratio).
The company says scaling up the Zeeland plant, a project which is already underway, will be crucial: “The path to profitability will be driven by the optimisation of the farm capacity utilisation in parallel with the acceleration of the sales growth.”
Meanwhile, the company says, during Q3 the company emphasized its focus on food service customers, organising numerous educational events and product demonstrations.
The update goes on: “These activities, conducted in-house and at key industry events, will strengthen The Kingfish Company’s brand and enhance recognition of its high-quality products. With recent additions to the sales team, the company has already achieved notable successes in attracting new customers and expanding sales with existing clients.”
The company says its broodstock programme, initiated more than 15 years ago, has reached a new milestone ahead of schedule, with the hatchery successfully producing the first batch of the next generation fish. These fish will be introduced in the farm progressively throughout 2025.
The update states: “This new fish generation shows promising potential, with projections indicating accelerated growth rates, improved feed efficiency, and overall superior quality.”
