Benchmark Holdings Plc – Q1 Results 2021

Benchmark Holdings plc

(“Benchmark”, the “Company” or the “Group”)

Q1 Results

(3 months ended 31 December 2021)

Excellent Q1 results with strong growth in revenues and Adjusted EBITDA

Building momentum following strong FY21 performance

In compliance with the terms of the Company's senior secured bond which requires it to publish quarterly financial information, Benchmark, the aquaculture biotechnology business, announces its unaudited results for the 3 months ended 31 December 2021 (the “period”) . All Q1 FY22 and Q1 FY21 figures quoted in this announcement are based on unaudited accounts. 

Highlights – Strong growth in revenues and Adjusted EBITDA; good performance in all business areas

Group revenues 38% ahead of the prior year (+38% CER) with good growth in all three business areas:

• Advanced Nutrition – revenues 26% above Q1 FY21 (+28% CER) building upon the strong FY21 performance
• Genetics – revenues 20% above Q1 FY21 (+18% CER) driven by higher harvest income, as well as higher salmon egg revenues
• Health – revenues 347% above Q1 FY21 (+348% CER) reflecting sales of Ectosan ^â Vet and CleanTreat ^â (launched in August 2021)

Adjusted EBITDA of £7.4m, 145% ahead of Q1 FY22, with all business areas EBITDA profitable 

Adjusted EBITDA margin increased from 10.4% to 18.6%

Operating loss halved, however net loss increased due to negative £4.9m non-cash movement in net finance costs ( Q1 FY21 had benefitted from £2.5m forex gain and £2.3m revaluation of hedging instrument associated with NOK bond)

Net debt reduced to £64.3m at 31 December 2021 (30 September 2021: £80.9m) following equity raise in November 2021; Net debt excluding lease liabilities £43.1m (30 September 2021: £56.9m)

Cash of £50.6m and Liquidity (cash and available facility) of £61.6m as at 21 February 2022

**  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 Summary

**  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

• Patrick Waty named new Head of Advanced Nutrition bringing extensive commercial and industry expertise to business area 
• Continued to strengthen our commercial footprint, enhancing our distributor network and commercial team
• Obtained ISO 14001:2015 certification for main facility in Thailand
• Benchmark's Frippak China Aquatic Feed named “Favourite Brand”

Genetics

• First deliveries of salmon eggs from new incubation centre in Iceland showing excellent quality, enhancing our ability to serve all production systems including land-based farming
• Good progress in the roll-out of SPR shrimp, winning new customers, import licence to India obtained and gaining commercial traction
• Appointment of Professor Ross Houston, leading aquaculture genetics scientist, as Director of Innovation, Genetics

Health

• Both CleanTreat® systems in operation from last part of quarter onwards and treatments showing excellent results in line with our expectations
• Order recently placed for third CleanTreat® system
• Collaboration with key customers on optimising future configuration initiated
• Progress in trials to obtain extension of Marketing Authorisation for Ectosan^âVet and CleanTreat^â in Norway
• Ectosan^â Vet patent grant approved providing 20-year protection

One Benchmark integration – continued to integrate Group functions to realise synergies, leverage capabilities and enhance customer proposition

Sustainability – by working with our suppliers the soy beans used in our feeds are sustainably certified

Consideration of a listing in Oslo is ongoing 

Current trading and outlook

Following the good performance in Q1 we are trading in line with FY22 expectations

Positive market environment across our core species

Well positioned to reach sustainable profitability and deliver growth, supported by leading market positions in all business areas, a focused strategy and well embedded financial discipline

Trond Williksen, CEO commented

“Benchmark has delivered an excellent Q1 performance, reporting a 38% annual growth in revenue and 145% increase in Adjusted EBITDA.  This reflects an excellent performance in Advanced Nutrition, continued good performance in Genetics and the benefit of revenues from the recently launched Ectosan^â Vet and CleanTreat^â in our Health business area. 

“We are performing in line with market expectations for the full year, with building momentum in our commercial, operating and financial performance in all business areas. The positive market environment in our core species, our leading market positions, together with our focused strategy and financial discipline positions the Group well to reach profitability and deliver growth.”