Benchmark Holdings PLC (LON:BMK) has delivered positive earnings in its third quarter, which it attributed to higher revenues and margins in its genetics division after moving external production in-house and reducing its operating costs during the coronavirus pandemic.
For the three months ended June 30, the aquaculture specialist reported adjusted earnings (EBITDA) from continuing operations of £300,000, swinging from a £1.4mln loss a year ago, while revenues rose to £24.5mln from £22.8mln.
The company said its genetics business had seen “continued good performance” during the period, while its advanced nutrition division had also seen higher revenues as it benefitted from a partial catch-up of orders that were delayed due to the coronavirus.
Looking ahead, Benchmark said the salmon industry “remains resilient” with stable sea bass and sea bream markets, although conditions in the shrimp market were “challenging” and they expected these trends to continue into its 2021 financial year.
The group also expects to deliver full-year results that are in line with market expectations.
“We are very pleased with the significant progress made over the last few months towards the completion of the disposal of non-core assets and the cash proceeds generated. Following the restructuring we are well advanced to become a streamlined, financially strong business wholly focused on our core businesses: Genetics, Advanced Nutrition and Health. We continue to work on our restructuring programme which aims to deliver £10mln in annual savings from [the 2021 financial year] taking us a step closer towards our goal of becoming sustainably profitable”, Benchmark chief executive Trond Williksen said in a statement.
“While the shrimp market continues to experience challenges as a result of [coronavirus] the salmon market which underpins our genetics and health businesses remains resilient and overall, we expect to deliver full year results in line with expectations”, the CEO added.