Customer stockpiling and seasonal fluctuations hit bottom line.
Benchmark posted its second quarter results with an operating loss of GBP 1.4 million, compared to an operating profit of GBP 1.7 million in Q2 2020.
The British aquaculture health, nutrition and genetics business posted GBP 30.4 million in revenue, a slight decrease from GBP 31.5 million in the same period of 2020.
In the Genetics segment, revenue was down due to seasonal fluctuations affecting the timing of egg deliveries against prior year and lower royalty income. Adjusted EBITDA reflected lower sales and lower contribution from fair value movements in biological assets.
In the Animal Health arm of the company, the lower revenue and adjusted EBITDA reflected normalised sales against the same period in the prior year which benefitted from customer stockpiling due to Covid-19 uncertainty.
Benchmark wrote that current trading is “in line with management expectations with good visibility of revenues for the second half of the year”.
“Benchmark has performed well in the first half and has made good strategic progress across our three business areas, said CEO Trond Williksen.
This reflects our successful restructuring and the new focus and discipline on delivering on our strategic priorities to create profitable growth. Our financial discipline including cost containment and strict cash management enables us to invest selectively in our core business, strengthen our position in our markets and deliver on the growth opportunities ahead,” said Williksen.