Large smolt producer has secured an agreement to deliver 170,000– 180,000 post-smolt in August 2024.
BioFish Holding, a Norwegian producer of large smolt, has released its second-quarter financial results, revealing a continued strong demand for its smolt and post-smolt, despite financial losses during the period.
“We continue to see strong demand for our smolt and post-smolt. With a good track record in terms of biological performance, BioFish is viewed as an attractive supplier of high-quality, healthy smolt and post-smolt by leading salmon farmers in Norway,” said CEO Sondre Hagerup Johnsrud.
The company reported no revenue for the second quarter, consistent with its production plan that included no deliveries during this time. For the first half of 2024, BioFish generated revenues of NOK 17.2 million ($1.63 million), driven entirely by the delivery of 206 tons of smolt in the first quarter.
BioFish posted an operating loss (EBIT) of NOK 11.4 million ($1.08 million) for Q2 2024, a sharp increase from the NOK 3.0 million ($285,000) loss reported in the same period last year.
For the first half of 2024, the company recorded a negative EBIT of NOK 13.7 million ($1.3 million), compared to a loss of NOK 7.3 million ($690,000) in the first half of 2023. The widening losses were attributed to increased personnel and operating expenses as the company ramps up its activities.
Despite the financial setbacks, BioFish secured a new agreement to deliver 170,000 to 180,000 post-smolt in August 2024, with further deliveries planned for September.
CEO Sondre Hagerup Johnsrud emphasized the strong demand for the company’s products.
“Moving forward, demand for smolt and post-smolt is expected to develop positively, supported by strong market fundamentals. The company expects to grow production to an estimated 800-900 tons in 2024 and further increase the production in 2025. For the long-term, we are exploring various strategies to grow our operations, with the overall ambition to meet the growing demand for high-quality smolt and post-smolt while contributing to solutions for key challenges in the aquaculture industry,” said Johnsrud.
BioFish expects to produce between 800 and 900 tons of smolt in 2024, with plans to increase production further in 2025 following the expansion of its RAS facility.
