In This Article:
Release Date: November 06, 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 (STU:6TW) reported improved operational EBIT per kilogram, increasing to EUR0.27 from EUR0.17 last year.
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The company achieved a significant turnaround in overall EBIT, with a profit of EUR2.3 million compared to a loss of EUR17.2 million last year.
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Biological development and growth have remained stable, supporting future growth plans.
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The company has a long-term target to reach a harvesting volume of 25,000 tonnes by 2029, indicating a strong commitment to growth.
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Minimal capital expenditures this quarter as the company focuses on fine-tuning its existing value chain, reflecting efficient resource management.
Negative Points
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Total revenues for the quarter decreased to EUR20.7 million from EUR29.7 million last year, attributed to lower volume and price achievement.
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Harvested volume decreased to 3,406 tonnes from 4,383 tonnes in the same period last year.
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Net financial losses were EUR2.8 million, slightly down from EUR3.1 million last year, indicating ongoing financial challenges.
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The equity ratio decreased to 36.6% from 37.5% in June, suggesting a slight weakening in financial stability.
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An increase in net interest-bearing debt by EUR15.3 million due to negative operational cash flow and working capital changes.
Q & A Highlights
Q: Can you elaborate on the reasons behind the decrease in revenue this quarter compared to last year? A: Baldur Einarsson, CFO: The decrease in revenue to EUR20.7 million from EUR29.7 million last year is primarily due to lower volume and reduced price achievement. Despite this, we have improved our operational EBIT from EUR730,000 to EUR936,000, indicating better cost management.
Q: What factors contributed to the significant improvement in overall EBIT this quarter? A: Baldur Einarsson, CFO: The improvement in overall EBIT to EUR2.3 million from a loss of EUR17.2 million last year was driven by better operational margins and the absence of major restructuring costs, such as those related to extraordinary mortality experienced last year.
Q: How has the company's debt level changed, and what are the reasons for this change? A: Baldur Einarsson, CFO: Our net interest-bearing debt increased to EUR134 million from EUR190 million in June. This change is mainly due to negative operational cash flow impacted by working capital changes, particularly a buildup in biomass.
Q: What are the company's capital expenditure plans moving forward? A: Stein Tveiten, CEO: Our CapEx was minimal this quarter as planned. We are focusing on fine-tuning our existing value chain with minor enhancements in sea equipment and maintenance. Our investments will align with increased output and harvesting volume.