Sheffield, U.K.-headquartered aquaculture biotechnology company Benchmark saw positive progress in its Genetics and Advanced Nutrition segments in the first half of its 2024 fiscal year, but this was largely offset by headwinds in its Health segment.
According to Benchmark’s interim results, its Q2 2024 revenues totaled GBP 39.8 million (USD 50.7 million, EUR 46.7 million), down 10 percent year over year.
By segment, Genetics revenues climbed 7 percent to GBP 13.2 million (USD 16.8 million, EUR 15.5 million), and Advanced Nutrition rose 3 percent to GBP 21.1 million (USD 26.9 million, EUR 24.8 million). However, its Health segment recorded a 35 percent revenue drop, dipping to GBP 5.4 million (USD 6.9 million, EUR 6.3 million).
Overall, its Q2 2024 operating profit fell GBP 100,000 (USD 127,300, EUR 117,400) year over year to GBP 600,000 (USD 764,000, EUR 705,000).
For H1 2024, Benchmark's Genetics division suffered an 11 percent year over year decline in revenue, dropping to GBP 28.4 million (USD 36.2 million, EUR 33.4 million), while the Advanced Nutrition division's revenue slipped 2 percent to GBP 40.4 million (USD 51.5 million, EUR 47.4 million), and its Health revenue fell 37 percent to GBP 11.5 million (USD 14.6 million, EUR 13.5 million).
The lower revenues contributed to an H1 2024 operating loss of GBP 3.7 million (USD 4.7 million, EUR 4.3 million), compared to a profit of GBP 1 million (USD 1.3 million, EUR 1.2 million) in the corresponding period of FY 2023.
Benchmark Holdings CEO Trond Williksen said he was pleased with the company's performance, despite the drop in revenue.
“[The period] demonstrated good momentum in the business, supporting our positive outlook,” he said. “We have delivered strong trading in our established business areas, made excellent progress in Chile – one of our key growth vectors – and made significant progress in our innovation program, where our recent investment to strengthen our innovation capabilities is bearing fruit.”
Benchmark’s Genetics segment has launched new salmon genetics and genotyping product portfolios and has integrated its shrimp activities with Advanced Nutrition to generate commercial opportunities. The company has also progressed on a gill disease project through a new partnership funded by Swindon, U.K.-based Biotechnology and Biological Sciences Research Council, Williksen said. And in October 2023, it received two separate salmon broodstock licenses from the Directorate of Fisheries in Norway.
Williksen said Benchmark's Health segment is in the process of transitioning to a new business model aimed at reducing infrastructure costs.
The company is trading in line with Benchmark management's expectations for the full year, he said.
“With our unique platform of mission-critical specialized solutions in areas where we hold market leading positions, we are strongly positioned to continue to deliver growth and to build sustainable shareholder value,” Williksen said.
In August 2022, Sheffield, U.K.-headquartered Benchmark announced a plan to uplist to the Oslo Børs in the first half of 2023. It is currently listed on the Euronext Growth Oslo exchange. In February 2023, Benchmark Genetics Head Jan-Emil Johannessen retired and was replaced by Geir Olav Melingen, previously Benchmark’s commercial director for salmon.
