In This Article:
Release Date: August 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Arctic Fish Holding AS (OSL:AFISH) reported the best first half in the company's history in terms of operational EBIT and operational EBIT per kilo.
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The company achieved an operational EBIT of EUR3.17 per kilo in the first half of the year, indicating strong performance.
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Harvest quantities for the quarter increased significantly to 1,300 tonnes compared to 100 tonnes in the same period last year.
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Operational revenues for the quarter reached EUR11.6 million, a substantial increase from the previous year.
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The company has a state-of-the-art RAS hatching and smolt production facility, enhancing its production capabilities.
Negative Points
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Net financial losses for the quarter amounted to EUR2.4 million.
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Net interest-bearing debt increased from EUR112.3 million to EUR118.6 million, indicating rising financial obligations.
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The equity ratio decreased to 37.5%, down by 1.3% from the previous quarter.
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Negative operational cash flow was reported, mainly due to working capital build-up.
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Total assets decreased by EUR3.21 million from the prior period, primarily due to a reduction in current assets.
Q & A Highlights
Q: Can you elaborate on the factors contributing to the significant increase in operational EBIT this quarter? A: Stein Tveiten, CEO: The increase in operational EBIT is primarily due to higher harvest volumes compared to the previous year. We harvested 1,300 tonnes this quarter versus 100 tonnes in the same period last year. This has allowed us to stabilize our fixed operational costs and improve our EBIT per kilo to EUR1.82, compared to a negative figure last year.
Q: What are the main reasons for the increase in net interest-bearing debt this quarter? A: Baldur Einarsson, CFO: The increase in net interest-bearing debt, which rose from EUR112.3 million to EUR118.6 million, is mainly due to negative operational cash flow related to working capital buildup. Additionally, net interest payments amounted to EUR2.4 million, contributing to the increase.
Q: How has the company's financial position changed compared to the previous quarter? A: Baldur Einarsson, CFO: Total assets decreased by EUR3.21 million to EUR233.3 million, primarily due to a reduction in current assets. The group's equity also decreased by EUR4.1 million, resulting in an equity ratio of 37.5%, down by 1.3% from the previous quarter.
Q: Could you provide more details on the company's capital expenditure plans for the year? A: Stein Tveiten, CEO: Our CapEx for the year remains as previously communicated, totaling up to EUR7 million. This quarter, we made minor investments in farming and smolt production equipment. Our focus is on utilizing the significant investments made in recent years to achieve our growth objectives.