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• Total Revenue: GBP147.7 million, a reduction of 7% in constant exchange rate compared to last year.

• Advanced Nutrition Revenue Growth: 5% increase in constant exchange rate.

• Health Revenue Decline: Down 41% compared to last year.

• Genetics Revenue Decline: 8% reduction in constant exchange rate.

• Adjusted EBITDA: GBP28.9 million, down 10% in constant exchange rate.

• Operating Cost Reduction: Decreased by 15% throughout the year.

• Impairments: Total of GBP15.3 million, mainly from Ectosan Vet and CleanTreat.

• Q4 Revenue: GBP36.8 million, an increase of 7% in constant exchange rate compared to Q4 last year.

• Q4 Adjusted EBITDA: GBP6.9 million, reflecting a reduction from last year.

• Nutrition Gross Profit: GBP36.7 million, despite an 11% drop due to lower artemia hatching rates.

• Health Gross Profit: GBP5.8 million from Salmosan and Purisan.

• Adjusted EBITDA for Continued Business: GBP11.9 million.

• Exceptional Costs: GBP4.5 million related to strategic review and restructuring.

• Net Finance Costs: Expected to decrease significantly post-transaction.

• CapEx: GBP3.92 million, with GBP2.2 million related to genetics.

• Warning! GuruFocus has detected 3 Warning Sign with BHCCF.

Release Date: December 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Benchmark Holdings PLC (BHCCF) has concluded a strategic review and signed an agreement to sell its genetics business to Novo Holdings, which is expected to strengthen the company's financial position.

• The sale of the genetics business will enable Benchmark Holdings PLC (BHCCF) to pay down expensive debt and return significant capital to shareholders.

• The company has managed to reduce operating costs by 15% throughout the year, demonstrating effective cost management.

• Advanced Nutrition showed resilience with a 5% growth in constant exchange rate despite challenging market conditions in the shrimp industry.

• The health business is now positioned as a smaller, profitable, and cash-positive entity, with strong sales from Salmosan and Purisan products.

Negative Points

• Benchmark Holdings PLC (BHCCF) experienced a 7% reduction in total group revenue in constant exchange rate compared to the previous financial year.

• The health business saw a 41% decline in revenue due to restructuring and the exit of Ectosan and CleanTreat from the market.

• The company reported an operating loss for the year, partly due to impairments totaling GBP15.3 million.

• The shrimp market remains challenging with low farm-gate prices affecting customer demand and product mix, leading to lower margins.

• The company anticipates a soft Q1 for the next financial year due to continued challenging trading conditions and the loss of a significant customer in Venezuela.