30 November 2022
Benchmark Holdings plc
(“Benchmark”, the “Company” or the “Group”)
Full Year Results for the Financial Year ended 30 September 2022
A year of sustained growth and strategic delivery
Benchmark, the aquaculture biotechnology company, announces its full year audited results for the year ended 30 September 2022 (the “period”).
Financial highlights – strong FY2022 results delivered ahead of original market expectations
· Revenue increase of 27% (+21% CER)
o Advanced Nutrition – excellent performance as the Company continued to capitalise on renewed commercial focus and recovery in the shrimp markets post pandemic; revenues increased by 14% (+7% CER)
o Genetics – strong performance benefitting from high demand for the Company’s salmon eggs delivered from Benchmark’s new incubation centre in Iceland; revenue growth +24% (+21% CER)
o Health – first full year of sales from new sea lice solution Ectosan ® Vet and CleanTreat ® resulting in revenue growth of 157% (+157% CER)
· Adjusted EBITDA +60% (+54% CER) driven by growth in the three business areas and continued financial discipline
· Adjusted EBITDA margin of 20% (FY21: 16%). Adjusted EBITDA margin excluding fair value uplift from biological assets increased to 19% (FY21: 13%)
· Loss for the period increased to £30.5m as a result of increased depreciation associated with CleanTreat® units and higher net finance expenses
· Disciplined investment in growth areas with tangible capex totalling £10.8m
· Refinancing of NOK 850m bond and post period end refinancing of USD $15m RCF
· Cash and cash equivalents of £36.4m and available liquidity of £45.8m
· At 28 November, cash and cash equivalents of £35m and available liquidity of £51m
| £m | FY 2022 | FY 2021 | % AER | % CER** |
| Revenue | 158.3 | 125.1 | 27% | 21% |
| Adjusted | ||||
| Adjusted EBITDA1 | 31.2 | 19.4 | 60% | 54% |
| Adjusted EBITDA excluding fair value uplift from biological assets | 29.6 | 16.1 | 83% | 76% |
| Adjusted operating profit | 9.1 | 10.8 | (15%) | (23%) |
| Statutory | ||||
| Operating loss | (7.9) | (5.4) | (46%) | (61%) |
| Loss before tax | (23.2) | (9.2) | (152%) | (167%) |
| Loss for the period | (30.5) | (11.6) | (163%) | (168%) |
| Basic loss per share (p) | (4.60) | (1.93) | (138%) | |
| Net debt3 | (73.7) | (80.9) | 9% | |
| Net debt excluding lease liabilities | (47.5) | (56.9) | 17% |
** Constant exchange rate (CER) figures derived by retranslating current year figures using previous year’s foreign exchange rates
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax, depreciation and amortisation and impairment), before exceptional items including acquisition related expenditure.
(2) Adjusted Operating Profit is operating loss before exceptional items including acquisition related items and amortisation of intangible assets excluding development costs
(3) Net debt is cash and cash equivalents less loans and borrowings
| Business Area Performance – £m | FY 2022 | FY 2021 | % AER | % CER** |
| Revenue | ||||
| Genetics | 58.0 | 46.8 | 24% | 21% |
| Advanced Nutrition | 80.3 | 70.5 | 14% | 7% |
| Animal Health | 20.1 | 7.8 | 157% | 157% |
| Adjusted EBITDA1 | ||||
| Genetics | 16.0 | 11.5 | 39% | 39% |
| – Net of fair value movements in biological assets | 14.4 | 8.2 | 75% | 76% |
| Advanced Nutrition | 19.0 | 13.8 | 38% | 29% |
| Animal Health | 0.1 | (2.7) | 104% | 102% |
** Constant exchange rate (CER) figures derived by retranslating current year figures using previous year’s foreign exchange rates
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax, depreciation and amortisation and impairment), before exceptional items including acquisition related expenditure.
Operational highlights
Advanced Nutrition – excellent performance
· Excellent performance driven by commercial focus, continued innovation and cost discipline, supported by positive market conditions
· New products and product upgrades brought to market including Artemia separation tool ‘Sep-Art Automag’ which delivers sustainability benefits
· Closure of trial facilities in Thailand as part of strategy to optimise operations
Genetics – continued growth
· Continued growth in core salmon egg business with record sales in FY2022
· New incubation centre in Iceland delivering increased quality and capacity which was instrumental in satisfying peak demand in the year
· Commercialisation of SPR shrimp progressing, leveraging Advanced Nutrition’s market position in shrimp
Health – further commercialisation progress
· Roll-out of Ectosan® Vet and CleanTreat® progressing with increasing customer adoption. Solution delivered consistent efficacy above 99%, with enhanced animal welfare and protection of the environment
· Marketing Authorisation for Ectosan® Vet and CleanTreat® in Norway extended to one reuse of water
· Marketing Authorisation obtained in the Faroe Islands
· Ectosan® Vet patent grant approved giving 20 year protection
Group – ESG commitment, continued integration and delivery against strategic priorities
· ESG – on track to achieve our Net Zero targets with implementation of carbon reduction plan; issue of first Green bond validates strong ESG credentials
· Continued Group integration by combining the commercial efforts across our salmon products, making the business more customer-centric and increasing efficiency
· Excellent employee engagement results aligned to the Group’s goal of making Benchmark “A Great Place to Work”
· Looking forward we remain focused on our four strategic pillars:
o Maintain and grow our leadership position in established markets
o Expand our business through the launch of new products and entry into new markets
o Continue to embed the new One Benchmark culture and to integrate the Group to realise synergies
o Pursue add-on acquisitions within core areas, adhering to strict criteria and making optimal use of our capital structure
Current trading and outlook – good momentumand trackingin-line with management expectations
· Good start to the year and positive momentum in the business
· The diversified nature of the business and management’s proactive commercial approach creates resilience and mitigates the potential impact from ongoing cost inflation and macroeconomic pressures
· Management expects that the recently announced change in tax regime for aquaculture producers in Norway will have a marginal direct effect on the Group’s business
· Well progressed towards dual listing on Euronext Growth Oslo as announced this morning; intention to uplist to the Oslo Børs in H1 calendar year 2023
· Longer term, management believe the Group is uniquely positioned in an industry that is structurally growing driven by megatrends
Trond Williksen, CEO, commented:
” In FY2022 Benchmark delivered 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.
“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.”