BUSINESS UPDATE
Updated: Mar 24, 2022
The Kingfish Company [Euronext: KING]
doubled sales and output while average
sales price increased in 2021
Driven by high demand for sustainably grown Dutch Yellowtail in Europe and the US, and as a result of the company’s successful and ongoing capacity expansion, The Kingfish Company reported a doubling of sales from €5.0 million in 2020 to €10.4 million in 2021.
“We are proud of our team which has delivered four years of successful and continuous system operations. In 2021 we doubled sales of whole fish equivalents (WFE) to 902 tons, compared with 467 tons in 2020. At the same time, the average sales price achieved increased by 6.5% to €11.5/WFE kg in 2021,” said Ohad Maiman, CEO of The Kingfish Company.
Market demand for high-value Dutch Yellowtail is strong in both Europe and the United States, and its products are now sold in 14 countries, where Whole Foods, Conad, Auchan, El Corte Inglés are some of the company’s largest retail clients. In 2021, the company produced a record 1,154 tons of high value yellowtail kingfish.
Solid results during the fourth quarter of 2021
Compared to Q4’20 sales grew 159 percent in revenue to €3.8m and 144 percent in whole fish equivalent (WFE) tonnage to 335 tons, while Horeca businesses were impacted by stricter corona measures. An average sales price increase resulted in €11.2 WFE kg on overall sales.
In Q4 2021 the company achieved production of 324 tons net growth, resulting in 1,154 tons of overall production in 2021. Productivity was 0.64 kg growth per cubic meter per day in Q4 2021, in line with the full year average.
Expanding capacity to meet strong demand
The Kingfish Company continues to be well on track with the expansion of its facilities in Europe and important milestones have been achieved for the planned new facility in Maine, US.
“We are pleased that we gained final state level approvals and announced the purchase of land for our new US farm in Maine, while our expansion in Europe is well on track. In parallel, we continue to work on securing financing for further expansion in Europe and in the US,”Mr. Maiman said.
Expansion in Europe well on track
The Kingfish Company continues to be well on track with the expansion of its facilities in Europe. The company had successfully completed phase 1B in early 2021, on time and on budget. Target standing biomass was reached in Q3, as scheduled, leading to record production and sales.
The construction of EU phase 2 remains on schedule. As previously announced, system capacity being constructed has been upgraded from projected 1,750 tons to 2,000 tons per year, bringing total installed capacity in the Netherlands to 3,500 tons per year once completed.
In the second half of 2021, spending on phase 2 capital development amounted to approximately €13.0 million. Total spending on capital development in the second half of 2021 was €18.7 million. As a result of the kick-off of phase 2B, which will include a second pumphouse, second intake- and exhaust pipeline and an expanded hatchery in the Netherlands, the company anticipates an acceleration of capex in 2022, with the majority of capex being spent in the first half of the year.
Milestones achieved in Maine
In November 2021, The Kingfish Company gained final state level approvals and announced that the land had been purchased for its new facility in Jonesport, Maine. Following the approval and the land purchase, the company is cleared to start groundworks. The US development is projected to reach 8,500 metric tons of capacity once built. Construction in Maine will start once financing has been secured.
For more information
Please see the attached Q4 and full year 2021 business update presentation.
The Kingfish Company will present the business update to investors, analysts, and media on Monday January 10th, 2022 at 15:00 CET. The online presentation will be followed by a Q&A session. Both will be hosted by the company’s CEO Ohad Maiman, CFO Christo du Plessis and COO Kees Kloet.
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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 1,500 tons of high quality and high value Yellowtail Kingfish.
Expansion is underway and capacity in the Netherlands will reach 3,500 tons in the second half of 2022. In the US, permitting for the company’s 8,500 tons capacity facility is progressing as planned.
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 energy, sourced from wind, solar and biogas. The company’s facilities operate on sea water, avoiding wasting of precious fresh water.
The Kingfish Company’s main product at present, 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) and British Retail Consortium (BRC). It was the winner of the 2019 Seafood Excellence Award, and it is recommended as green choice by Good Fish Foundation.