Benchmark Holdings plc
(“Benchmark”, the “Company” or the “Group”)
Q3 Results
(3 months ended 30 June 2021)
Strong quarter with continuing momentum and strong performance across all business areas
Strategic milestone with successful launch of Ectosan® Vet and CleanTreat® post period
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 30 June 2021 (the “period”) . All Q3 FY21, Q3 FY20, YTD Q3 2021 and YTD Q3 2020 figures quoted in this announcement are based on unaudited accounts.
Highlights – strong Q3 2021 performance across all business areas and continuing momentum
Revenues 17% ahead of the prior year (+25% CER) (continuing operations) with strong performance across all business areas:
- Genetics revenues 21% above Q3 2020 driven by higher sales of salmon eggs
- Advanced Nutrition revenues 15% above the prior year reflecting growth across all product lines and continuing its good performanc
- Health revenues 20% above Q3 2020 benefitting from higher Salmosan sales
Adjusted EBITDA more than doubled as a result of higher revenues, operational improvements and continuous cost control
YTD Q3 2021, Group revenues were 9% higher than the prior year (+15% CER) and Adjusted EBITDA 26% ahead (38% CER) (continuing operations)
Liquidity of c.£51m (cash and available facility) as at 23 August 2021
|
£m |
YTD Q3 2021 |
YTD Q3 2020 Restated* |
CER** YTD Q3 2021 |
Q3 2021 |
Q3 2020 Restated* |
CER** Q3 2021 |
|
Revenue from continuing operations |
87.8 +9% |
80.3 |
92.6 +15% |
28.3 +17% |
24.1 |
30.2 +25% |
|
Adjusted |
|
|
|
|
|
|
|
Adjusted EBITDA1 from continuing operations |
12.4 +27% |
9.8 |
13.5 +38% |
4.4 +110% |
2.1 |
4.7 +123% |
|
Adj. EBITDA excluding biological asset movements |
10.0 +23% |
8.1 |
11.1 +37% |
4.1 +37% |
3.0 |
4.4 +47% |
|
Adjusted Operating Profit2 |
7.3 +40% |
5.2 |
8.3 +60% |
2.9 +383% |
0.6 |
3.1 +417% |
|
Statutory |
|
|
|
|
|
|
|
Operating loss |
(5.9) |
(8.1) |
|
(1.2) |
(4.2) |
|
|
Loss before tax from continuing operations |
(5.9) |
(19.6) |
|
(2.7) |
(6.2) |
|
|
Loss for the Period – total incl. discontinued operations |
(5.9) |
(23.2) |
|
(2.8) |
(4.4) |
|
|
Basic loss per share (p) |
(1.01) |
(3.83) |
|
(0.44) |
(0.66) |
|
|
Net debt3 |
76.1 |
54.7 |
|
76.1 |
54.7 |
|
|
Net debt excluding lease liabilities |
52.7 |
45.3 |
|
52.7 |
45.3 |
|
* YTD Q3 2020 and Q3 2020 numbers have been restated to reflect changes to the ongoing continuing business since the figures were originally reported (note 5).
** 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.
Divisional summary (Continuing operations)
|
£m |
YTD Q3 2021 |
YTD Q3 2020 Restated* |
CER** YTD Q3 2021 |
Q3 2021 |
Q3 2020 Restated* |
CER** Q3 2021 |
|
Revenue |
|
|
|
|
|
|
|
Advanced Nutrition |
53.4 +13% |
47.3 |
57.3 +21% |
18.4 +15% |
16.0 |
20.6 +29% |
|
Genetics |
30.9 +4% |
29.7 |
31.7 +7% |
8.7 +21% |
7.2 |
8.5 +18% |
|
Health |
3.6 -8% |
3.9 |
3.6 -8% |
1.2 +20% |
1.0 |
1.2 +20% |
|
Adjusted EBITDA1 |
|
|
|
|
|
|
|
Advanced Nutrition |
10.2 +65% |
6.2 |
11.0 +77% |
3.9 +39% |
2.8 |
4.4 +57% |
|
Genetics |
8.2 -16% |
9.8 |
8.5 -13% |
2.2 +83% |
1.2 |
2.1 +75% |
|
– Net of fair value movements in biological assets |
5.9 -27% |
8.1 |
6.2 -23% |
1.9 -10% |
2.1 |
1.8 -14% |
|
Health |
(3.8) +3% |
(3.9) |
(3.8) +3% |
(1.2) +8% |
(1.3) |
(1.2) +8% |
* YTD Q3 2020 and Q3 2020 numbers have been restated to reflect changes to the ongoing continuing business since the figures were originally reported (note 5).
** 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 – launch of Ectosan® Vet (formerly BMK08) and CleanTreat® post period end; first sea lice treatments delivered successfully
· Post period end, the Group received Marketing Authorisation in Norway for Ectosan® Vet and the MRL (Maximum Residue Limit) was adopted into the Agreement of the European Economic Area, completing the regulatory steps for commercialisation. The first treatments were successfully delivered in August 2021. Ectosan® Vet is the first new sea lice medicine to come to market in more than a decade
· Good commercial and operational momentum in Advanced Nutrition continues with strong growth YoY
· Expansion projects for salmon and shrimp Genetics in Iceland, Fellsmere and Chile are progressing according to plan
· Continue to win new contracts for future delivery in the emerging land-based salmon segment
Market environment – Reopening of hospitality sector creates positive market outlook
· The gradual reopening of the hospitality sector creates a positive outlook for our end markets
· Conditions in the salmon industry are positive with a recovery in prices after a drop related to Covid-19; demand growth continues to exceed global supply
· The shrimp market is recovering with potential to bounce back to pre-Covid-19 levels despite continued hardships due to the pandemic in certain markets
· The seabass and seabream market have substantially recovered
Current trading and Outlook
· The Group is trading in line with market expectations for the full year with good revenue visibility for the remainder of the year
· Looking forward to FY 2022, consistency in performance is expected to continue in Genetics and Advanced Nutrition, while Health starts benefitting from Ectosan® Vet and CleanTreat® revenue stream
Trond Williksen, CEO, commented:
“We are very pleased with the results and progress in Q3 2021 and the subsequent period. Our three business areas performed strongly, and we achieved a major strategic milestone with the successful commercial launch of Ectosan® Vet and CleanTreat®. We now have the basis to have three profitable business areas moving the Group closer to overall profitability.
“There is good momentum in the business following the streamlining exercise conducted in 2020 and the adoption of a new commercial focus. Our end markets are gradually recovering from the impact of Covid-19, creating a positive environment for our business. All this provides confidence in our ability to deliver full year results in line with market expectations as well as progress in future years.”