Retail strategy brings surge in sales for The Kingfish Company
A shift in strategy in its Europe and United States operations boosted sales numbers for land-based Yellowtail farmer The Kingfish Company, even in the midst of the global pandemic last year.
“We produced 228 tons of high-value Yellowtail kingfish in the first quarter of 2021, setting another productivity record of 0.70kg (biomass growth per cubic meter per day),” the company said in its annual report for 2020. “On the sales and marketing front, we delivered several strategic retail launches in Europe and in the U.S., with more exciting developments in the pipeline.”
The land-based aquaculture company was founded in 2015. It was listed in the Oslo stock exchange late last year.
In February this year, The Kingfish Company announced its sales strategy pivot in response to the challenges posed by the COVID-19 pandemic.
“Sales measured in whole fish equivalents for the quarter increased 92 per cent year-over-year…Full year results came in ahead of expectation,” the Dutch aquaculture firm added.
Sales volumes and prices also remained at pre-COVID levels, and design capacity was exceeded by 30 per cent, the company added.
The company said its revenues for 2020 was €4.97 million (US$5.9 million) in line with the previous year. Earnings before interest, taxes and depreciation was negative €3.54 million ($4.2 million).
The company posted a net loss after tax of €3.6 million ($4.3 million). The company said this reflected expenditures the company incurred in the expansion of its Netherlands site and development of its first U.S. site in Maine.
An analysis of the 2020 financials indicated that farming operations delivered a gross margin of €1.6 ($1.92) per kg produced on a unit economics basis. In 2019, the company’s gross margin was €0.4 ($o.47) per kg.
The Phase 1B expansion of the company’s facility in The Netherlands was completed last year. Stocking of the plant started as planned in Q1 2021.
This new system will be fully stocked by end of Q2 this year. This will mark the completion of the expansion to 1,250 tons installed capacity.
“Thanks to the hard work and endless dedication of our team, by 2020 we have been able to demonstrate that with our design and operational protocols, we have crossed the Rubicon from an experimental to a proven and commercially viable production method,” said Ohad Maiman, founder and chief executive office of The Kingfish Company.