Excellent results following a strong year of revenue growth and improved profitability with positive contributions from all business areas.
Financial Highlights
- Revenue from continuing operations increase of 7% (+7% CER)
- 15% increase (+16% CER) in Adjusted EBITDA from continuing operations, excluding fair value movements from biological assets, as a result of higher revenues and tight cost control
- Significant improvement in cash generation with operational cash flow close to double to £20m (FY22: £10.8m)
Operational highlights
In Advanced Nutrition, achievements include the launch of SnappArt, our first AI-enabled live feed counting tool for artemia and rotifers, achieving MSC sustainability certification for our Artemia products and establishing new R&D collaborations in Ecuador and Singapore to develop products tailored to the local markets.
In Genetics, we achieved record sales of salmon eggs and a doubling of sales in Chile which underscoring growing commercial traction. . The attainment of disease-free compartment status in this market sets the stage for future exports. Additionally, a new shrimp genetics product portfolio is underway, aligned to realise synergies with our existing commercial footprint in shrimp through Advanced Nutrition. The expansion of the R&D team with a focus on reproductive technologies paves the way for breakthrough developments in sterility and gene editing positioning the Company for continued growth.
In Health, we experienced increased adoption of Ectosan® Vet and CleanTreat® along the entire Norwegian coastline. Progress in developing a new business model for CleanTreat®, and integrating it into customers’ well boat infrastructure, marks a significant advancement. Salmosan® Vet, our second sea lice treatment, saw a resurgence in demand driven by label changes allowing longer use in specific territories.
Positive Outlook
As we embark on FY24 we have positive momentum and are trading in line with management expectations. The company remains poised for continued success, fueled by our commitment to innovation, strategic alignment, and operational excellence.
Trond Williksen, CEO, commented:
We delivered good growth in revenue and Adjusted EBITDA, and increased cash conversion, despite challenging conditions in the global shrimp markets. This demonstrates the strength of our business and the agility of our organisation to adapt – mitigating the impact of a soft market and taking advantage of commercial opportunities to further consolidate our leading market position. The new financial year has also started well and in line with our expectations, with positive momentum in the business across our three business areas.
Since the end of FY20 when we completed the Group restructuring, we have been building a track record of growth and improved profitability, reflected by revenues and Adjusted EBITDA from continuing operations which have increased over this period by 61% and 128%, respectively.
Benchmark is uniquely positioned in an industry that is structurally growing and supported by attractive megatrends. With a clear strategy and an integrated commercial network covering the main aquaculture species, we have a significant opportunity to deliver growth and shareholder returns. We will continue the strategic development of the Group and the ongoing execution of our strategy in order to realise the value inherent in our business for the benefit of all our stakeholders.
