Aker BioMarine hit by challenging ice conditions and lower krill volumes

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Aker BioMarine today announces its results for the third quarter 2020. The krill harvester achieved net sales of USD 70.2 million and an adjusted EBITDA of USD 26.8 million.

The adjusted EBITDA target of USD 80-90 million for the full year 2020 is maintained, with the current forecast in the low end of the range.

Onshore operations in Houston had strong performance with increased output combined with more efficient operations. The harvested krill volumes in the period was 8,728 tonnes, down from 11,991 tonnes last Q3, and was negatively impacted by technical issues on the vessel “Antarctic Endurance”, in addition to challenging ice conditions.

The Kori brand was successfully launched in the US this summer and the development is promising. Kori is rolled out to most of the larger retailers in the US, including Costco in the third quarter, with significant volumes.

“Aker BioMarine is on track for delivering on our long-term growth and earnings targets. The robustness of our business model was clearly demonstrated this quarter, where the temporary impact from lower harvesting volumes were balanced out by strong and structural improvements in other parts of our business” said Matts Johansen, CEO of Aker BioMarine.

“The development and growth of our branded products is an essential part of Aker BioMarine’s journey for value creation. The marketing launch of Kori in the US this summer was a key milestone for us, and I am glad to report that sales are promising with more than 5x growth since the marketing campaign started. We have also strengthened our long-term commitment to sustainability, and we are delighted to have received our 6th consecutive A-rating from Sustainable Fishery Partnership, making the Antarctic krill fishery rated the most sustainable fisheries in the world”, Johansen added.

Krill is being used as ingredients to fish feed. Among Aker BioMarine’s biggest customers is feed supplier BioMar.