Norwegian cod-farming company Norcod reported an increase in revenue in Q4 2024 and a drop in its operating losses while adding that it is now planning a NOK 300 million (USD 26.9 million, EUR 25.7 million) fundraising round to help increase its production.
In its Q4 2024 results, the company said it achieved NOK 124 million (USD 11 million, EUR 10 million) in revenue during the quarter, an increase of 47 percent over the NOK 83 million (USD 7.4 million, EUR 7.1 million) it posted in the same period of 2023. Alongside the increased revenue was an improved EBIT of a NOK 33 million loss (USD 2.9 million, EUR 2.8 million), down from a loss of NOK 104 million (USD 9.3 million EUR 8.9 million) in Q4 2023.
“The increase is mainly explained by significantly higher harvest volume compared to the corresponding quarter last year,” Norcod said.
According to the company’s results, harvests jumped to 2,390 metric tons (MT) whole fish equivalent (WFE) in Q4 2024, up from 1,611 WFE in Q4 2023. Alongside the higher harvest came lower production costs per kilogram, dropping from NOK 48.30 (USD 4.33, EUR 4.13) per kilogram WFE to NOK 46 (USD 4.12, EUR 3.94) per kilogram WFE.
The company said its Q4 2024 results also benefitted from strong pricing, with a 29 percent increase in sales prices from Q1 2024 to Q4 2024.
“We are witnessing growing awareness and recognition of the advantages of farmed cod, offering a reliable year-round supply of fresh, high-quality cod with similar versatility to salmon,” Norcod said.
The company said substantial quota reductions for wild cod has also increased awareness for Norcod’s farmed cod, with companies viewing it as “a sustainable and viable alternative,” Norcod said.
“Farmed cod ensures a steady supply while easing the strain on wild stocks, positioning farmed cod as a dependable and sustainable protein source for the future,” the company said. “Farmed cod is a proven part of the solution to providing the world’s growing population with a reliable, sustainable and healthy protein source.”
For the full year, the company’s preliminary FY 2024 results indicate revenue of NOK 397 million (USD 35.6 million, EUR 34 million), up from the NOK 269 million (USD 24 million, EUR 23 million) it posted in FY 2023. The firm's overall EBIT also improved slightly, from a loss of NOK 215 million (USD 19 million, EUR 18 million) in FY 2023 to a loss of NOK 203 million (USD 18 million, EUR 17 million) in FY 2024.
On the back of the market’s strength, Norcod said it is contemplating an equity raise of a minimum of NOK 150 million (USD EUR) to fund an annual production capacity of up to 25,000 MT WFE.
“Some of Norcod’s largest shareholders have already indicated support covering the minimum amount in the equity raise. DNB Markets has been engaged as financial advisor,” the company said. “The contemplated Private Placement is expected to take place during Q1 2025.”
Norcod said if the equity raise is successful, it has already secured an increased debt commitment from DNB Bank ASA of up to NOK 150 million (USD 13 million, EUR 12 million).
The company also said it has adjusted its 2025 production plan to “optimize for long-term, profitable growth.” Those plans will likely negatively affect cash flow in FY 2025 – which will mean its earlier promise in Q3 2024 that it would reach positive cash flow from operations in the year 2025 will no longer be accurate.
