Clean Seas Seafood (CSS) H1 2025 earnings summary

Executive summary

• Revenue declined 10.4% year-over-year to $30.5 million, with a statutory net loss after tax of $32.6 million, driven by higher-than-expected mortalities in the Year Class 24 fish cohort and significant asset impairments.

• Realised price per kg increased 3% to $23.24, but production metrics deteriorated, with tonnes sold down 13% and harvest volumes down 45% compared to the prior period.

• Operating cash flows improved to $5.7 million from a $2.7 million outflow, and free cash flows turned positive at $4.3 million, reflecting operational changes and reduced feed purchases.

Financial highlights

• EBITDA loss widened to $30.1 million from $23.7 million year-over-year; EBIT loss increased to $32.2 million from $25.6 million.

• Net tangible asset backing per share fell to $0.14 from $0.34.

• No interim or final dividend declared.

• Total assets dropped from $87.0 million at June 2024 to $49.5 million at December 2024, mainly due to lower biological assets, asset impairments, and inventory reductions.

• Total liabilities decreased from $25.0 million to $20.1 million over the same period.

Outlook and guidance

• Future underlying profits are expected to be materially higher in the second half due to seasonal fish growth patterns.

• The company’s ability to continue as a going concern depends on the successful completion of the Yumbah merger proposal, additional funding, ongoing financier support, and operational improvements.