Australia-based yellowtail kingfish farmer Clean Seas posted losses for the year ending 30 June 2024 after undertaking a detailed operational review.
The company announced the review in Q1 2024 after a turnaround strategy that saw success in 2023 hit a snag and resulted in the company posting a loss of AUD 7.7 million (USD 5.2 million, EUR 4.7 million). Clean Seas said that review has been completed, resulting in a biomass reduction, restructuring of the workforce, consolidation of farming activities, and a clearance of excess frozen inventory.
As a result of the process, the company posted a statutory loss after tax of AUD 33.5 million (USD 22.5 million, EUR 20.4 million) in FY 2024 – a big drop from the statutory profit after tax of AUD 6 million (USD 4 million, EUR 3.6 million) it posted in FY 2023.
“2024 was a year of transition, where the financial results reflect the reasons why we conducted the operational review, but more importantly start to demonstrate the benefits of that review,” Clean Seas CEO Rob Gratton said during a webcast of the results.
The company sold higher volumes of its yellowtail kingfish, reaching 3,141 metric tons (MT) in FY 2024 – up 3 percent from the 3,054 MT it sold in FY 2023. Despite higher volumes, the company’s revenue dropped from AUD 69.4 million (USD 46.6 million, EUR 42.2 million) in FY 2023 to AUD 8.8 million (USD 5.9 million, EUR 5.3 million) in FY 2024. That was partially related to higher costs of good sold and higher post-farmgate costs.
Clean Seas’ gross profit dropped to AUD 6 million (USD 4 million, EUR 3.6 million) in FY 2024, a drop of AUD 8.7 million (USD 5.8 million, EUR 5.3 million) from the AUD 14.7 million (USD 9.8 million, EUR 8.9 million) it posted in FY 2023. The company’s operating EBITDA also dropped, going from positive earnings of AUD 3.7 million (USD 2.5 million, EUR 2.2 million) in FY 2023 to a loss of just over AUD 5 million (USD 3.4 million, EUR 3 million) in FY 2024 – a drop of AUD 8.7 million (USD 5.8 million, EUR 5.3 million).
The company attributed the losses to its operational review – which saw lower pricing on discounted frozen sales as it cleared excess inventory. The company said it was also hit by high feed prices, which offset slight increases in fresh pricing from AUD 22.82 (USD 15.31, EUR 13.86) per kilogram in FY 2023 to AUD 22.93 (USD 15.38, EUR 13.93) in FY 2024.
Another part of the operational review was ...
