The Kingfish Company announced strong demand for its yellowtail kingfish in Europe and the U.S., and a strengthening financial position, in its Q2 results issued 14 July, 2022.
Fresh and frozen products are now sold in high end retail and food service outlets in 14 countries, including in Whole Foods Market, Auchan, and Conad.
“The second quarter of 2022 was a strong quarter for The Kingfish Company, seeing sales doubling, average sales prices increasing by 12 percent YoY, while achieving record production and sector leading productivity. Consistent with our growth plans, we have achieved an important milestone and are now EBITDA positive year to date for the Netherlands operation,” The Kingfish Company CEO Ohad Maiman said.
The company is also on track to have positive earnings before interest, taxes, depreciation, and amortization in 2023, he announced.
Net production of fish during the quarter was 402 metric tons (MT), compared to 340 MT in Q1 2022. Productivity was up 18 percent compared to Q1 2022, reaching 0.80 kilograms per cubic meter per day, making it "sector leading" according to the company.
Marketing a full line of fresh and frozen retail ready portions, The Kingfish Company saw sales revenue increased by 108 percent during the quarter to EUR 4.8 million (USD 4.83 million), with a sales volume of 384 MT whole fish equivalent (WFE), up 95 percent on Q2 2021. A sales price of EUR 13.10 (USD 13.18) per WFE kilogram was achieved on total Q2 2022 sales, with larger kingfish commanding a higher return than smaller fish.
The price of large fish rose EUR 1.10 (USD 1.10) in Q2 2022 compared with the previous quarter, to reach EUR 15.70 (USD 15.80) per WFE kilogram, while the first sales price of small-fish price was up EUR 1.40 (USD 1.40) to EUR 11.40 (USD 11.47) per WFE kilogram.
Annual production capacity at the company's Netherlands facility is currently 1,500 MT, but Maiman said expansion is underway to ramp up capacity to 3,500 MT, with construction entering its final phase. The work has included expanding the hatchery, and installing a second pumphouse and new seawater pipelines. Production of fish is on target to start at the end of 2022, with market-sized fish available in 2023.
“We are nowhere near scratching the surface of the depth of the market for our fish,” Maiman said.
The company’s 8,500-MT-capacity facility in Jonesport, Maine, U.S.A., is progressing as planned, with all state and federal permits secured, the final stages of planning in hand, and contractor bidding selection underway. Maiman is hopeful of a successful outcome for the municipality construction permit application, despite a host of local objections.
“There are no legal or environmental reasons to turn down our application, so I am optimistic,” he said.
However, the company may have to contend with more local opposition as residents of Jonesport will vote on a moratorium on all aquaculture operations in the town on 20 July, Spectrum News reported.
A batch of 2,000 third-generation fingerlings were successfully transported to the hatchery in Maine during the quarter, to become part of the future broodstock requirement.
“These represent some of the world’s most-advanced genetic lines of selectively bred Yellowtail Kingfish,” Maiman said.
He said while significant cost overruns had been avoided during the first year and a half of construction in the Netherlands, current supply chain issues and inflation could lead to additional costs and potential delays to complete the remaining work. As a result, strict cost control measures have been put in place to limit any impacts.
In tandem with increasing production, the company has a target to improve production efficiency and to decrease the amount of marine ingredients in feed by 2025. Trials are currently underway using a number of alternative plant-based protein sources, including algal oil.
Photo courtesy of The Kingfish Company
