Sheffield, U.K.-headquartered Benchmark has announced plans to uplist to the Oslo Børs in the first half of 2023, it announced in conjunction with the release of its third-quarter 2022 financial results.
The aquaculture biotechnology firm is currently listed on the Euronext Growth Oslo exchange. Accompanying the presentation of Benchmark’s third-quarter results on 25 August, Benchmark CEO Trond Williksen said the company’s restructuring in 2020 is now paying dividends.
Benchmark posted a 28-percent gain in its Q3 2022 revenue, hitting GBP 36.3 million (USD 42.5 million, EUR 42.4 million) for the quarter, and its earnings before interest, tax, depreciation, and amortization in the quarter reached GBP 6.6 million (USD 7.7 million, EUR 7.7 million), up 48 percent. However, its adjusted operating profit dropped 73 percent in the quarter to GBP 800,000 (USD 937,000, EUR 934,000).
“Q3 represents a continuation of the operational and financial progress reported consistently by Benchmark over the quarters following the 2020 restructuring. We continue our dedicated work to realize the potential of the well-invested and well-positioned platform that Benchmark has become,” Williksen said. “We are excited about the development of a new configuration and business model for CleanTreat, which although reducing our growth rate for next year, increases our confidence in the solution and enhances Benchmark’s long-term prospects. Overall, we expect to continue to deliver further underlying progress in the coming quarters, with the aim of becoming a profitable company supporting the global aquaculture industry with sustainable solutions.”
The company said reduced sea lice pressure had resulted in lower capacity utilization across the firm’s operation, but that its plan to move to install CleanTreat systems onboard its customers wellboats would enable it to move to a sale and licensing business model while eliminating the need for operating its own platform supply vessels, thus reducing capital investment.
Williksen said the company plans to execute a limited share issue to satisfy the regulatory requirements of a listing on Euronext Growth Oslo, subject to market conditions.
In its first-half results, released in May, Benchmark achieved 33 percent growth in its revenues and 100 percent increase in its adjusted EBITDA of GBP 79.2 million (USD 93 million, EUR 92.7 million) and GBP 15.9 million (USD 18.7 million, EUR 18.6 million) respectively. For the six months ended 31 March, 2022, the company posted an operating loss of GBP 2.2 million (USD 2.6 million, EUR 2.6 million), compared with a loss of GBP 4.6 million (USD 5.4 million, EUR 5.4 million) in H1 2021.
In H1 2022, Benchmark’s Advanced Nutrition division achieved revenue of GBP 42 million (USD 49.3 million, EUR 49.1 million) and an adjusted EBITDA of GBP 11.5 million (USD 13.5 million, EUR 13.5 million), up 20 percent and 84 percent year-on-year, respectively. According to Benchmark’s interim results statement, the revenue upturn reflected the success of enhanced commercial organization and the recovering shrimp market, while the EBITDA performance was a result of cost control and revenue growth.
Its Genetics division also saw its revenue increase 20 percent and its adjusted EBITDA fall by 5 percent to GBP 26.6 million (USD 31.2 million, EUR 31.1 million) and GBP 5.7 million (USD 6.7 million, EUR 6.7 million), respectively, with the company citing a higher harvest income and egg revenues.
The Animal Health segment’s revenues soared by 358 percent to GBP 10.7 million (USD 12.6 million, EUR 12.5 million) due to the roll-out of its Ectosan Vet and CleanTreat sea lice solution, while its adjusted EBITDA improved by GBP 2.7 million (USD 3.2 million, EUR 3.2 million) to GBP 100,000 (USD 117,000, EUR 117,000).
“Benchmark delivered an excellent performance in the first half of the year. Evidence continues of the benefits of a restructured organization with renewed commercial focus and financial discipline driving growth and returns,” Benchmark CEO Trond Williksen said. “We have visible growth opportunities underpinned by existing infrastructure and are uniquely positioned in an industry with strong fundamentals driven by megatrends.”
Over the summer, Benchmark announced the hiring of Balachandar Jayaraman as its sales technical manager responsible for sales and technical support in India, and Preben Matre as commercial lead for its Animal Health business area, focusing on sea lice solutions.
Photo courtesy of Benchmark
