Barramundi Group (BARRA) H1 2024 TU earnings summary

Executive summary

• Ongoing restructuring delayed reporting, with a strategic pivot from Singapore to Brunei and focus on creditor negotiations.

• Revenue for 1H 2024 was SGD 7.3m, down from SGD 15.9m in 1H 2023, reflecting a smaller business scope after deconsolidation of MPA subgroup.

• Net loss for 1H 2024 was SGD 3.4m, a significant improvement from the adjusted net loss of SGD 5.0m in 1H 2023.

• Significant operational progress in Brunei, including deployment of new sea cages, expansion of land-based facilities, and increased sales tonnage.

• Commercial efforts include expanding distribution partnerships, pilot exports, and new product launches in local restaurants and Singapore's largest supermarket retailer.

Financial highlights

• Year-on-year standing biomass increased by 113% with a single cage at Pelong Rocks.

• Net sales in Brunei rose to SGD 115k in 1H 2024 from SGD 44k in 1H 2023; sales tonnage increased from 3 to 13 tonnes.

• Group revenue decreased to SGD 7.3m in 1H 2024 from SGD 15.9m in 1H 2023 (SGD 9.3m adjusted for MPA subgroup exit).

• Fassler segment improved EBITDA margin to 4.5% from 3.9% year-over-year, attributed to new higher-margin products.

• Operating EBITDA loss narrowed to SGD 1.5m from an adjusted loss of SGD 1.5m in 1H 2023.

Outlook and guidance

• Restructuring resolution expected by first half of 2025.

• Plans to deploy five additional net pens in Brunei in early 2025, targeting a steady state of 1,000 metric tons per year.

• UVAXX to commercialize SDDV vaccine and develop vaccines for two additional pathogens.

• Fassler to focus on growing trading revenues and premium product rollout.