Nordic Aqua Partners (NOAP) Q2 2024 earnings summary

Executive summary

• Achieved first commercial sales and harvest in Q2 2024, marking a major operational milestone and entry into the Chinese market with the Nordic PureAtlantic brand.

• Q2 harvest totaled 523 tonnes HOG with a 99% superior rate and average weight of 4.54 kg; sales reached EUR 4.7 million at EUR 8.94/kg.

• Geosmin off-flavour issue detected in July, leading to reduced harvest and turnover for H2 2024; mitigation and corrective actions underway.

• Excellent fish health and welfare, with low mortality rates and strong biological performance across all batches.

• Strengthened commercial and operational organization to support growth and market presence.

Financial highlights

• Q2 2024 revenue reached EUR 4.7 million from 523 tonnes sold at an average price of EUR 8.94/kg HOG.

• EBITDA for Q2 was nearly -EUR 1.5 million; operating EBIT at -1.5 million or -2.93 EUR/kg; net loss for the period was EUR -1.7 million.

• Net cash flow in Q2 was between -2 million and -2.3 million; cash at period end was EUR 10.4 million; total assets stood at EUR 124 million.

• Equity ratio at quarter-end was 58% (down from 80% YoY); equity at 30 June 2024: EUR 72.1 million.

• Net interest-bearing debt at quarter-end was EUR 15.0 million.

Outlook and guidance

• No harvest expected in Q3 and reduced harvest in Q4 (400–600 tonnes) due to geosmin; some biomass to be transferred to 2025.

• FY 2024 harvest guidance: 900–1,100 tonnes; 2025 guidance estimated at 4,500–5,000 tonnes.

• Additional equity financing of approximately NOK 250 million planned for 2024 to support liquidity and growth.

• Stage 2 expansion on track, with first eggs in Q3 and harvest from phase two expected in 2026; Stage 3 timeline decision expected in Q4 2024.

• Production plan for 2025 remains unchanged despite geosmin impact.