Benchmark (LSE: BMK) today announced its Q3 Results
“Q3 represents a continuation of the operational and financial progress reported consistently by Benchmark over the quarters following the 2020 restructuring. We continue our dedicated work to realise the potential of the well invested and well positioned platform that Benchmark has become.
We are excited about the development of a new configuration and business model for CleanTreat®, which although reducing our growth rate for next year, increases our confidence in the solution and enhances Benchmark’s long term prospects.
Overall, we expect to continue to deliver further underlying progress in the coming quarters, with the aim of becoming a profitable company supporting the global aquaculture industry with sustainable solutions.”
Fifth consecutive quarter of year-on-year and quarter-on-quarter growth in Adjusted EBITDA on a rolling twelve month basis
Financial highlights
- Q3 FY22 revenues were £36.3m, 28% ahead of the prior year (+20% CER)
- Genetics delivered an excellent performance with revenues 50% above Q3 FY21 driven primarily by higher sales of salmon eggs and harvest revenues. Q3 YTD FY22 revenues up 29%
- Advanced Nutrition reported revenues 5% above the prior year in-line with anticipated seasonal pattern. Q3 YTD FY22 revenues up 15%
- Health revenues were 213% above Q3 2021 driven by Ectosan® Vet and CleanTreat® revenues. Q3 YTD FY22 revenues up 308%
- Q3 FY22 Adjusted EBITDA excluding fair value movements from biological assets increased 26% (+18% CER) as a result of higher revenues, higher asset utilisation and cost discipline
- Adjusted EBITDA margin of 14% (excluding fair value movements from biological assets) for the Period
Operating highlights
- Advanced Nutrition – continued good performance
- Driven by commercial focus and cost discipline with good resilience to inflationary environment through better productivity and asset utilisation
- Positive market environment
- Genetics – recent investments delivering growth in core areas
- Continued growth in salmon egg sales: 59.4m eggs sold in Q3 FY22 (Q3 FY21: 45.2m eggs) demonstrating success of investment in incubation unit in Iceland
- Commercialisation of shrimp genetics (SPR shrimp) exceeding plan in Q3 FY22 and Q3 YTD FY22
- Health – Ectosan® Vet and CleanTreat®
- Capacity utilisation was low in Q3 FY22 after spring delousing with less sea lice pressure faced by existing and potential customers
- Post period end there has been significant and growing customer interest ahead of the peak sea lice treatment season
- Progress in the development of a new configuration and business model for CleanTreat®
- New CleanTreat® configuration based on the next generation of large wellboats which make it feasible to install CleanTreat® systems onboard customer wellboats
- Enables a new sale and licencing business model, eliminates need for PSVs (platform supply vessels) and reduces capital investment
- Group integration – enhanced customer-centric approach by combining the commercial function across Genetics and Health for salmon
Current trading and outlook
Trading in-line with expectations for FY22:
Strong outlook for Genetics and Advanced Nutrition sales for remainder of the year
Continued effort to embed Ectosan® Vet and CleanTreat® into customers’ sea lice strategies and infrastructure
FY23 is expected to be a transitional year for the Health business area as the Company assumes transfer of some CleanTreat® capacity to the new business model, removing some supply from the market for a period of time
Medium term targets for the Group and for Health remain unchanged
First step towards a listing on Oslo Børs, the leading seafood and aquaculture listing venue globally
Read our full set of results here
