Land-based salmon pioneer battles costs in year of expansion.
Land-based salmon farming company Atlantic Sapphire reported a net loss of $167.3 million for the year ended 31 December 2024, an increase of $33.6 million compared to its 2023 loss of $133.8 million. The widening loss came despite higher revenues and production volumes, due to significant impairment charges and continued operating costs.
Revenue rose to $22.8 million in 2024, up from $14.0 million in 2023, as harvest volumes nearly tripled from 1,545 tonnes HOG (head-on gutted) to 4,365 tonnes HOG. The company noted that this growth was part of a wider ramp-up in production following challenges in previous periods.
However, overall costs continued to outpace revenue. Cost of goods sold increased by $16 million year-on-year to $83.1 million. Despite lower mortality costs and better plant utilization, production still lagged behind full efficiency.
Atlantic Sapphire recorded a positive fair value adjustment on its biological assets of $4.1 million in 2024, compared to a negative adjustment of $14.1 million in 2023, reflecting the improved condition and size of fish by year-end.
The company noted a clarification in its Q1 2025 reporting: a previous trading update mistakenly cited March’s harvest weight of 3.1 kg HOG as the average for the quarter. In fact, average harvest weight for the quarter was 2.6 kg HOG, rising from 2.2 kg in January to 2.8 kg in February and 3.1 kg in March. This marked a modest improvement from the Q4 2024 average of 2.4 kg.
Operating losses deepened to $163.2 million, driven in large part by a $73 million impairment on non-current assets—double the $35 million recorded in 2023. EBITDA losses, adjusted for impairment and fair value effects, came in at $79.8 million for the year.
Administrative expenses and personnel costs also rose, reflecting management transitions and higher insurance and bad debt expenses.
The company’s financial position weakened as total assets fell by $68.6 million to $273.7 million, while equity dropped by $80.3 million to $202.8 million. Atlantic Sapphire completed capital raises totaling $95 million during the year to strengthen its balance sheet.
Cash flow from operations saw an outflow of $87.4 million, while capital expenditure dropped significantly to $7.4 million as the company slowed Phase 2 construction in the U.S. to focus on stabilizing Phase 1 production.
Despite the challenges, the company said it maintained access to funding and remains focused on increasing operational efficiency and production output.