Australia-based yellowtail kingfish farmer Clean Seas posted higher revenue and a positive underlying gross profit and statutory net profit in the company’s FY 2022 ending 31 August.
The Port Lincoln, South Australia-headquartered firm posted revenues of AUD 66.1 million (USD 44.7 million, EUR 45 million), up 37 percent from the AUD 48.4 million (USD 32.8 million, EUR 32.9 million) earned in 2021. That higher revenue was due to both higher volumes and higher prices – the company sold 3,757 metric tons (MT) of product in the year with an average sale price of AUD 17.61 (USD 11.93, EUR 12.00) per kilogram.
That price was a 15 percent increase over the average price it earned in FY 2021, which the company attributed to a growth in consumer awareness and acceptance of yellowtail kingfish and the “outstanding premium quality, culinary flexibility, and Spencer Gulf provenance” of the company’s product.
On top of the increase price, sales, and revenue, the company had a 19 percent reduction in costs due to a “substantial reduction” in its live fish and frozen inventory.
The results combined to give the company an underlying gross profit of AUD 6.8 million (USD 4.6 million, EUR 4.63 million) in FY 2022, an increase of AUD 16.1 (USD 10.91 million, EUR 10.97 million) from the loss of AUD 9.2 million (USD 6.23 million, EUR 6.27 million) the company had in FY 2021.
The company also posted a statutory earnings before interest, taxes, depreciation, and amortization (EBITDA) of AUD 13.2 million (USD 8.94 million, EUR 9 million), a significant increase over the FY 2021 loss of AUD 26.8 million (USD 18.1 million, EUR 18.2 million). The company’s underlying operating EBITDA, meanwhile, was a loss of AUD 4.8 million (USD 3.25 million, EUR 3.27 million), a significant improvement over the AUD 20 million (USD 13.56 million, EUR 13.64 million) loss it posted in FY 2021.
“Underlying EBITDA was impacted by the discounted sell-through of surplus frozen inventory in Q1 FY22, and by elevated production costs resulting from the carrying cost of excess frozen inventory and live biomass,” Clean Seas said.
Overall, the company delivered a statutory net profit of AUD 8.6 million (USD 5.83 million, EUR 5.86 million), a jump of AUD 40.7 million (USD 27.59 million, EUR 27.76 million) over the loss of AUD 32 million (USD 21.70 million, EUR 21.82 million) the company posted in FY 2021. The positive cash flow, Clean Seas CEO Rob Gratton said, comes ahead of schedule for the company, which was founded in 2017.
“While the quality and Spencer Gulf provenance of our yellowtail kingfish continues to drive sales growth, I’m thrilled that we have also been able to demonstrate how well our fish performs in an expanded cross-section of markets and channels,” Gratton said. “With increased scale and our cost focus, we have made solid progress towards proving out Clean Seas’ financial model. Achieving such significant revenue growth and converting excess inventory into cash has delivered positive operating cash flow a year earlier than expected.”
Photo courtesy of Clean Seas
