Maynard, Massachusetts, U.S.A.-based genetically engineered salmon producer AquaBounty released its financial results for the fourth quarter of 2020, as well as those for the full year, this week, reporting a net loss of USD 16.4 million (EUR 13.8 million) in 2020 and a fourth quarter net loss of USD 6.1 million (EUR 5.1 million).
Revenue in Q4 2020 came out to USD 50,197 (EUR 42,194), compared to USD 46,367 (EUR 38,974) in revenue recorded during the same period one year prior. The company attributes the low figure to a delayed harvest of its AquAdvantage salmon, a decision it said it made due to the COVID-19 pandemic’s effects on the foodservice industry. The company had originally planned for its first harvest to commence in December 2020, but pushed the harvest date back to April 2021.
AquaBounty's total product revenue for 2020 was tallied at USD 127,663 (EUR 107,333), compared to USD 186,738 (EUR 157,001) in 2019.
In February, the company improved its balance sheet through a public stock offering that netted it approximately USD 127.1 million (EUR 110 million) in new funding, before deducting underwriting discounts and commissions and offering expenses.
AquaBounty plans to use the funds for general corporate purposes, including the payment of costs associated with the construction or site development for a new production farm; investing further in its sales and marketing, research, and development efforts; and payments of anticipated general and administrative expenses.
“The fourth quarter of 2020 was focused on operational execution, as we prepare for the harvest of our AquAdvantage salmon as market conditions permit. We also took steps to strengthen our balance sheet ahead of the construction of our planned 10,000-metric-ton farm,” AquaBounty President and CEO Sylvia Wulf said.
The company has not yet chosen a site for its third fish farm. In late October, AquaBounty announced it had selected Mayfield, Kentucky, U.S.A., as the location of its new farm, but it later backtracked and said it is in the process of completing follow-up evaluations of two other potential facility locations and will have a final decision in late March. The company is planning to begin construction on the new farm in 2021, with commercial production expected to begin in 2023.
“Our recent public offerings provide the financing to fund the expected cost of Farm 3, which is critical to secure in advance of breaking ground on construction, Wulf said. "We are continuing to evaluate debt financing options in support for Farm 3 as well, which could further extend our operational runway as we move forward with construction and commercialization.”
Despite running up against COVID-19 setbacks, Wulf said she is positive regarding AquaBounty’s outlook for 2021 as the foodservice industry begins to recover. Samples of AquAdvantage salmon were recently shipped to the company’s first customers for final quality checks. Wulf said the company expects AquAdvantage salmon’s uptake in the market to begin modestly and grow stronger in the second half of 2021.
“2020 was a decisive year for AquaBounty, and we believe we have positioned the company for an even more pivotal 2021. With our fortified balance sheet, the impending first-ever commercial harvest of AquAdvantage salmon, and the planned construction of our next farm, we look forward to sharing our upcoming milestone achievements with our valued shareholders,” Wulf said.
