Full Year 2021 Financial Results and Business Update Presentation
BARRAMUNDI GROUP 29/04/2022
About Barramundi Group
A top barramundi producer
Leading integrated and sustainable aquaculture in Australasia
1,600 restaurants, hotels, and retailers in selected markets
Today, we produce 2,000 tonnes across Australia, Singapore, Brunei
Our ambition is to grow to 75,000 tonnes production
Why Ocean Barramundi?
Barramundi has the potential to become the Salmon Of The Tropics due to its unique attributes
Scalability Suited for aquaculture
Potential Untapped tropical range
A tropical fish species that complements existing cold water species, while setting itself apart in the farmed fish landscape
A highly productive, fastgrowing and robust species that is well-suited to largescale aquaculture due, in particular, to its high fecundity and attractive harvestable yields
Clean-tasting and delicate texture, it is well-loved by both chefs and consumers. It is versatile and easy to prepare, and is perfect for any cuisine and recipe
Versatility Cuisine-friendly
Responsible Ethical consumption
We raise our barramundi sustainably with a focus on the environment and safe nutrition so that we can conserve our marine resources for future generations
2021 Profit & Loss
- Revenue increased by 15% driven by increase in WFE harvest volume from 1837T to 1951T and better selling prices achieved from higher proportion of sales to B2C customers in Singapore and increase in selling prices to food service customers in Australia.
- 31% improvement in operating EBITDA from -\$9.2m to -\$6.3m due to uptake in sales revenue and continued control in costs.
- Non-operating costs in 2021 of \$8.3m consists of:
- New farms costs (Australia & Brunei) \$1.4m
- Write-off related to Semakau nursery \$2.8m
- Impairment of goodwill for investment in SG sub. \$2.5m
- IPO/ESOS/Unrealized exchange loss \$1.6m
- Note that out of the \$8.3m non-operating costs, new farms costs and IPO costs totaling \$2m have a cash impact.
*Alternative performance measures
Barramundi Group Ltd discloses alternative performance measures as a supplement to the financial statements prepared in accordance with IFRS. Such performance measures are commonly used by analysts, investors and other stakeholders to evaluate the performance of the company and its businesses. The measures are provided to give an enhanced insight into the operations of the company and its businesses.
*Operating EBITDA and/or Operational EBITDA is net profit/(loss) before amortization and depreciation expenses, finance costs, provision for income taxes, excluding new sites and one-off non-operational costs.
| In SGD thousands |
2021 |
2020 |
|
|
|
|
|
|
|
| Revenue |
\$32,701 |
\$28,364 |
+ |
15% |
|
|
|
|
|
| Operating EBITDA |
(\$6,350) |
(\$9,240) |
+ |
31% |
|
|
|
|
|
| Add/(Less) : Non-operating costs |
(\$8,326) |
\$1,656 |
|
|
|
|
|
|
|
| Group EBITDA |
(\$14,676) |
(\$7,584) |
|
|
|
|
|
|
|
| Depreciation and amortization |
(\$4,545) |
(\$3,759) |
|
|
|
|
|
|
|
Group EBIT
(before fair value adjustment) |
(\$19,221) |
(\$11,343) |
|
|
2021 Balance Sheet
• Investing for growth with \$8m on capex spending
- \$2.4m new farm being built at new site in Singapore at St John's Island
- \$4.1m new land and sea nurseries built in Brunei with fish being stocked
- \$1.5m replacement nets and PPE in Australia to improve husbandry practices and efficiencies.
- Joint vaccine field trial with a major multinational pharmaceutical that could lead to the registration of a vaccine to counteract the mortalities at sea for a viral pathogen which reduced the biological assets value in the Singapore farm in 2021.
- Liabilities from convertible loans and redeemable preference shares cleared prior to the listing in August 2021.
- Successful listing on Euronext Growth Oslo in August 2021 raised \$18.3m (NOK119m) to fund current operating businesses.
| 2021 |
2020 |
|
|
| 25,933 |
24,916 |
| 11,175 |
14,240 |
| 2,091 |
2,604 |
| - |
330 |
| 20,468 |
22,933 |
| 3,512 |
1,966 |
| 7,201 |
6,408 |
| 28,482 |
29,327 |
|
|
| 98,862 |
102,725 |
|
|
| 51,526 |
29,847 |
| 4,985 |
5,372 |
| 3,424 |
3,958 |
| 22,448 |
24,946 |
| 6,630 |
17,411 |
| 9,849 |
21,191 |
|
|
| 98,862 |
102,725 |
|
|
2021 Cash Flow Statement
- Significant investment for growth with \$8m capex spending in Singapore, Australia and Brunei farms.
- \$16m net proceeds from successful listing in August 2021.
| In SGD thousands |
2021 |
2020 |
|
|
|
| Net cash from operating activities |
(\$11,994) |
(\$8,520) |
|
|
|
| Acquisition of subsidiaries |
\$0 |
(\$3,637) |
| Investment in property, plant and equipment |
(\$8,033) |
(\$3,626) |
| Net cash from investing activities |
(\$8,033) |
(\$7,263) |
|
|
|
| Net proceeds from issuance of shares |
\$16,002 |
(\$105) |
| Net borrowings |
\$1,967 |
\$22,735 |
| External capital contribution to subsidiary |
\$1,020 |
\$366 |
| Cash from financing activities |
\$18,988 |
\$22,996 |
|
|
|
| Net increase in cash and cash equivalents |
(\$1,039) |
\$7,213 |
| Effect of foreign exchange rate changes |
\$194 |
\$70 |
Cash and cash equivalents at beginning of
year |
\$29,327 |
\$22,044 |
| Cash and cash equivalents at end of year |
\$28,482 |
\$29,327 |
|
|
|
2021 Operating Highlights - Australia
- Strong top line growth with 18% increase achieving \$16m in revenue in 2021.
- Increase in revenue and selling prices driven by continuing strong demand from both food service customers and Coles (one of two largest supermarket chains in Australia) for premium ocean grown barramundi sold under Cone Bay Ocean Barramundi brand with feature in Coles Master Chef Australia national TV campaign and billboard advertising.
- Continued increase in farm productivity and improvements in husbandry practices with biomass growth.
- UVAXX Australia incorporated as a wholly owned subsidiary of UVAXX Singapore site has been secured and lab designed to provided fish health services to the fam and other producers in Australia
- Improvement in operating EBITDA from -\$3.9m to -\$2.6m on the back of strong sales, continuing strict cost control and improvements in efficiencies. 2020 2021
2021 Operating Highlights - Singapore
- Strong pivot towards B2C online sales amidst Covid restrictions achieving an increase in overall selling price whilst relatively maintaining revenue.
- New farm lease obtained (St. John's) and currently under construction. Secured only lease available in the southern waters. Operational by Q4 2022. Third site allows fallowing of existing sites in 2022.
- Partnership on joint vaccine field trial with a major multinational pharmaceutical to be undertaken in Q3 2022. A viable vaccine for viral disease will have a positive impact on biological performance.
- Moving juvenile production to St. John's Island Marine Aquaculture Center reduced juvenile production cost while rightsizing quantities. Better biosecurity also led to significant improvement in juvenile survival.
- Improvement in operating EBITDA from -\$3.7m to -\$2.1m driven by a larger proportion of B2C online sales with higher selling prices and continuing strict cost control.
- Continued strong engagement and support by government demonstrated by multiple ministerial visits. Barramundi Group still positioned as "tip of the spear" for Singapore's 30 x 30 Food Security targets
2021 Operating Highlights - Brunei
- Completion and operations commencement of Broodstock Development Center 0.5 Hectare RAS nursery with fish stocked
- New office built, with 10 staff onboarded
- Completion and operation commencement of Pelumpong Sea Nursery
- Secured 100Ha Pelong grow-out lease A4 2020, cages and commencement expected in Q4 2022
- Application for a 2nd 21Ha land site in progress, expected to be finalised in Q2 2022
- Experienced industry veteran hired as Production Manager for Brunei
2021 Operating Highlights - Fassler
- Acquired Fassler in 2020 for synergies to the Group's business. Fassler offers premium quality seafood and value-added products with processing capabilities in Singapore
- Successful turnaround of Fassler in the first year in 2020 from EBITDA of \$3.9m to +\$1.0m with multiple positive changes and improvements made across all facets of the business, including product offerings and pricing, new customers, staffing and management
- Continued improvement in 2021 with 27% top line growth and 50% EBITDA growth amidst ongoing challenging business environment from Covid restrictions and supply chain challenges
- Post-turnaround focus will be on creating pipeline of value-added products that will grow Fassler products into new channels
-
Planned investment into automation technology and equipment will aid in cost reduction and productivity improvements
-
7,000 by 2026 on track and planning for significant additional capacity beyond 2026
- Leases application submitted in Australia with potential of up to 30,000 tonnes
- In advanced discussions in Brunei to obtain additional land and ocean sites
- Awarded research grant in Singapore to develop barramundi broodstock breeding programme
- Working on long plans across all sites with capex, opex requirements, infrastructure
Outlook
- New reporting format from Q1 2022 with full capitalization model
- Prices expected to be stable
- Australia: Tonnage according to plan, slightly below last year due to biomass adjustment
- Australia: 13 new lease sites submitted
- Australia: \$2m Grant for new Broome nursery
- Australia: Strategic partner discussions ongoing
- Brunei: Launch event for first harvest, exports to China
- Singapore: Tonnage below last year due to reduced biomass
- Singapore: R&D grant awarded for Genetic and Broodstock development
IPO and Investor Relations
- Successful IPO. The IPO in August 2021 raised NOK119m (equivalent to SGD18M) at a share issue price of NOK14.7O (SGD2.25) with the issue of 8.1m new ordinary shares.
- Limited liquidity. Limited investor communication and liquidity after listing.
- Measures. In 2022, investor Relations will be improved by:
- Increasing frequency of reporting to quarterly reporting.
- Changes to reporting and presentation format from Q1 2022.
- Appointment of IR consultant.
- CEO's attendance as a speaker at Northern Atlantic Seafood Forum (NASF) in June 2022.
- Planning for investor event in Oslo.
Financial Calendar
2022 financial calendar published on Euronext Webnews
| 2021 Full year results and business update |
29 April 2022 |
| Q1 2022 Results and business update |
27 May 2022 |
| Annual General Meeting |
21 June 2022 |
| Q2 2022 Results and business update |
30 August 2022 |
| Q3 2022 Results and business update |
29 November 2022 |
| Q4 2022 Results and business update |
28 February 2023 |
| 2022 Full year results and business update |
28 April 2023 |
Why Ocean Barramundi?
Quality starts at the source. Seafood that is raised better, taste better.