Second Quarter and First Half Year 2024 financial results

05 Sep 2024 08:00 CEST

Sales growth accelerating

Highlights Q2 2024

• Volume sold 512 tons, up 36% (Q2 2023: 377 tons)
• Revenue increased 31% to € 7.3 million (Q2 2023: € 5.6 million)
• Revenue per kg € 14.2 (Q2 2023 € 14.8 per kg)
• Operational EBITDA improved to € -1.6 per kg (Q2 2023: € -2.9 per kg)
• New sales and marketing initiatives to increase penetration of Yellowtail
Kingfish in targeted markets
• The U.S. appeals court upheld permit for construction of a farm in Jonesport,
Maine

Kats, Netherlands – September 5, 2024 – The Kingfish Company N.V. (the
“Company”; “Kingfish”; OSE: KING), pioneer and leader in sustainable land-based
production of yellowtail kingfish, publishes Q2 and H1 financial results. The
Company will host a webcast today at 14:00 CET.

“Q2 2024 showed an acceleration of our growth marked by a 36% increase in volume
to 512 tons and revenue of € 7.3 million, an increase of 31 % compared to last
year. Our efforts in penetrating key markets and exploring new territories are
starting to pay off as we continue to build up our sales team.

Our farm's biological performance is highly encouraging, with biomass growth
reaching 631 tons and the standing biomass more than doubling to 1,075 tons. Our
RAS systems are operating beyond expected performance, underscoring the
effectiveness of our technology and processes in consistently and reliably
producing high-quality, sustainable yellowtail kingfish,” said Vincent Erenst,
CEO of The Kingfish Company.

Financial and operational review

During the second quarter, the Company demonstrated substantial sales
acceleration, achieving a record volume of 512 tons, marking a 36% increase
compared to the same period last year. This impressive growth is a result of
focused efforts to penetrate key markets and expand into new territories,
driving our revenue to € 7.3 million, a 31% increase from Q2 2023.

The Company has been increasing its sales and marketing team and is launching
new initiatives to accelerate the penetration of Yellowtail Kingfish in targeted
markets. Sales are accelerating, and the company is confident that these efforts
will gradually drive growth and further strengthen its market position.

Operational EBITDA improved by 26% , reaching €-0.8 million in Q2 2024, up from
€ -1.1 million in Q2 2023. For the first six months of 2024, operational EBITDA
saw a 53% improvement to € -1.0 million from € -2.2 million in H1 2023. This
positive change in EBITDA was driven by increased revenue and enhanced
production efficiency.

By the end of Q2 2024, standing biomass reached 1,075 tons, up 110% from the
same quarter in 2023, and up 3% from Q1 2024. Due to unexpectedly strong biomass
growth, and in order to align production to market demand, the company
implemented growth control measures, leading to temporarily reduced productivity
at 0.56 kg growth per cubic meter per day (Q1 2024: 0.57 kg per cubic meter per
day) and an increased eFCR of 1.47 (Q1 2024: 1.26). The biomass has reached its
maximum carrying capacity, though harvest capacity has not yet peaked,
explaining the slight decline in productivity.

Cash flow and liquidity

On June 30, 2024, the Company maintains liquidity of € 18.5 million, comprising
€ 4.7 million in cash and short-term deposits, along with € 5.8 million in
financing facilities. Cash usage in the second quarter amounted to
€ 7.6 million. Capital expenditures in the period amounted to € 2.8 million. A
significant portion of this was for an upgraded power connection to the national
grid. Additionally, as of 2024, the company began paying interest in cash rather
than capitalizing payments, resulting in € 2.0 million in interest payments
during the quarter.

Outlook

As The Kingfish Company continues to navigate through its sales and market
development phase, we remain optimistic about the opportunities ahead. The
Company is focusing on accelerating revenue growth, while optimizing operations
and making substantial investments in sales and marketing to expand its customer
base and develop existing and new markets.

The Kingfish Company continues to develop its expansion plans in the US and the
Netherlands. The Company expects to benefit from the scaling effects, and
further improvement in operations and productivity in the Netherlands will drive
profitability and moving towards positive cash flow.

The Company is closely monitoring the development of its liquidity position to
ensure that it remains fully financed to sustain the current growth trajectory.


Webcast

CEO Vincent Erenst and CFO Jean-Charles Valette will present the Q2 2024
financial results on Thursday September 5, 2024, at 14:00 CET. The online
presentation will be followed by a Q&A session. The presentation will be
available on our website before the start of the webcast.
Click here to access the webcast.

For media and investor inquiries, please contact
press@thekingfishcompany.com
ir@thekingfishcompany.com

Company News feed
https://www.the-kingfish-company.com/news

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 3,500 tons of high quality and high-value yellowtail
kingfish. Next expansion opportunities are in the Netherlands and the US.
Kingfish Maine is fully permitted by local, state, and federal regulatory
agencies to build an 8,500 tons production facility.
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 electricity, sourced from wind, solar and biogas. The
Company's facilities operate on sea water, avoiding wasting precious fresh
water.

The Kingfish Company's main product, 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), GLOBAL G.A.P. and
Friend of the Sea. It was the winner of the 2019 Seafood Excellence Award, and
it is recommended as green choice by Good Fish Foundation. Yellowtail amberjack
farmed in recirculating aquaculture systems is rated a Green Best Choice by
Seafood Watch.

This information is pursuant to the EU Market Abuse Regulation and subject to
the disclosure requirements pursuant to Section 5-12 the Norwegian Securities
Trading Act.

This press release contains certain non-IFRS financial measures which are not
recognized measures of financial performance under IFRS. All figures in the
press release are unaudited.

More information:
Access the news on Oslo Bors NewsWeb site

627045_The Kingfish Company N.V. - Interim financial statements H1 2024.pdf
627045_TheKingfishCompany - Q2 H1 2024 fin results - presentation.pdf
627045_TheKingfishCompany - Q2 H1 2024 fin results - pr.pdf