Benchmark bullish despite increased loss
Aquaculture biotech company earned more in 2022 financial year than in 2021 but bottom line was impacted by depreciation and higher finance costs
Aquaculture biotechnology company Benchmark Holdings has announced results for its 2022 financial year that it said are ahead of original market expectations.
The company, which is a major supplier of ova to the salmon farming industry and operates its novel Ectosan Vet / CleanTreat delousing service for farmers in Norway, increased adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) by 60% to £31.2 million.
Adjusted EBITDA margin increased from 16% in the 2021 financial year (FY21) to 20% in FY22, which ended on September 30.
£30.5 m loss
However, loss for FY22 increased by 163% to £30.5 m (FY21: £11.6 m) due to increased depreciation associated with CleanTreat units and higher net finance expenses. CleanTreat removes residues of Ectosan Vet and lice egg strings from water used to give salmon bath treatments in wellboats.
Benchmark’s revenue increase by 27% to £158.3 m in FY2022, with each of its three divisions – Advanced Nutrition, Genetics, and Health contributing more.
In Advanced Nutrition, revenues were up by 14% to £80.3 m, partly due to a recovery in the shrimp markets, and revenue in the Genetics division increased by 24% to £58 m due to strong demand for salmon eggs from Benchmark’s new incubation centre in Iceland.
Revenue in the Health division rose by 157% to £20.1 m due to sales of Ectosan Vet and CleanTreat services.
UK-registered Benchmark, which today announced moves to list on the Oslo stock exchange, said it had had a good start to FY23 and there was positive momentum in the business.
Chief executive Trond Williksen said FY2022 had been another year of growth and strategic progress, underpinned by four quarters of consistently improved financial results.
“This demonstrates the success of our restructuring and culture change, the quality and potential of our business and the talent and commitment of our people, as well as the underlying strength of our markets,” said Williksen.
“Our strategic and commercial focus have contributed to strong results. Going into the new financial year, there is good momentum in line with our expectations and positive dynamics in our industry creating significant opportunities to deliver value for all our stakeholders.”