Benchmark records 'good performance' across business in Q1

Aquaculture company Benchmark reported a “good performance” in all its business areas in its first quarter update on Tuesday, with group revenue up 38% year-on-year on an actual basis and at constant exchange rates.

The AIM-traded firm said advanced nutrition revenue was 26% above the first quarter of the 2021 financial year, or 28% higher at constant currency, building on its “strong” performance a year ago.

In genetics, revenue was 20% above the first quarter last year, or 18% at constant exchange rates, driven by a higher harvest income, as well as higher salmon egg revenues.

Finally, in its health division, revenue surged 347% year-on-year, or 348% at constant currency, which the board put down to sales of ‘Ectosan Vet’ and ‘CleanTreat’, launched in August.

Adjusted EBITDA totalled £7.4m, which was up 145% year-on-year, with all three business areas EBITDA profitable, while the firm’s adjusted EBITDA margin expanded to 18.6% from 10.4%.

Benchmark said its operating loss halved, although its net loss increased due to a negative £4.9m non-cash movement in net finance costs, while the first quarter last year benefitted from a £2.5m foreign exchange gain and a £2.3m revaluation of a hedging instrument associated with its Norwegian krone bond.

Net debt narrowed to £64.3m as at 31 December, from £80.9m at the end of September, following Benchmark’s equity raise in November.

The board said that net debt figure excluded lease liabilities of £43.1m, which themselves were down from £56.9m on 30 September.

Cash was £50.6m, and total liquidity was £61.6m, as at 21 February.

“Benchmark has delivered an excellent first quarter performance, reporting a 38% annual growth in revenue and 145% increase in adjusted EBITDA,” said chief executive officer Trond Williksen.

“This reflects an excellent performance in Advanced Nutrition, continued good performance in genetics and the benefit of revenues from the recently launched Ectosan Vet and CleanTreat in our health business area.”

Williksen said the company was performing in line with market expectations for the full year, with momentum building in its commercial, operating and financial performance in all business areas.

“The positive market environment in our core species, our leading market positions, together with our focused strategy and financial discipline positions the group well to reach profitability and deliver growth.”

At 0915 GMT, shares in Benchmark Holdings were up 0.92% at 55p.