Clean Seas Seafood has withdrawn its sales guidance for FY 2025 as higher-than-expected mortalities will result in the firm missing its harvest targets.
The Australia-based yellowtail kingfish farmer reported its 2024 year class cohort is seeing increased mortality rates in the warmer summer months and that it expects the problem to continue.
“The losses currently being experienced, combined with a preliminary assessment of the condition of a sub-population of the remaining live fish, indicates that mortality rates will be in excess of the levels which formed the basis of previous guidance,” the company said in a release.
While its results for FY 2025 will likely be behind expectations due to the performance of the 2024 year class, the company said its 2025 year class is seeing “encouraging performance” and that the significant organizational changes it has made to its operational structure are continuing to benefit the cohort's performance.
Clean Seas has faced a difficult period after a proposed turnaround strategy, which led to positive cash flow in FY 2023, hit a snag following a loss in Q1 2024. The company announced an operational review after the loss, and the company posted another loss in FY 2024 that Clean Seas CEO Rob Gratton said was part of the company being in a transitional year.
Now, the company has withdrawn the guidance it issued less than one month ago in a 1 November business update. During that update, the company said ...
