Benchmark Holdings Plc

Earnings Release • Feb 15, 2024

Q1 Results (Three months ended 31 December 2023)

Q1 Results (Three months ended 31 December 2023)

Good performance in Genetics and Advanced Nutrition in line with Management’s expectations

Actions taken to transition to new business model in Health

In compliance with the terms of the Company’s unsecured Green bond, which requires it to publish quarterly financial information, Benchmark, the aquaculture biotechnology business, announces its unaudited results for the three months ended 31 December 2023 (the “Period”), which constitute the first quarter for the fiscal year (“FY”) 2024. All Q1 FY23, Q4 FY23 and Q1 FY24 figures quoted in this announcement are based on unaudited accounts.

Financial highlights

• Q1 FY24 revenues were £40.5m, 26% below a particularly strong Q1 FY23 (-19% CER), but 11% above Q4 FY23, maintaining quarterly momentum

o Genetics revenues were £15.2m, a solid performance against a strong Q1 FY23 when the Company benefitted from supply constraints of salmon eggs in the market (Q1 FY23: £21.4m)

o Advanced Nutrition revenues were £19.3m, 13% above Q4 FY23 reflecting a solid performance in the context of continuing soft market conditions (Q1 FY23: £22.7m)

o Health revenues of £6.1m were lower than anticipated as a result of biological challenges faced by certain customers’ fish stock which led to the cancellation of orders of Ectosan® Vet and CleanTreat® in December (Q1 FY23: £10.4m)

• Gross profit margin maintained at 45% (Q1 FY23: 45%)

• Q1 FY24 Adjusted EBITDA excluding fair value movements from biological assets was £7.5m (Q1 FY23: £12.5m) due to lower revenues partially offset by a reduction in operating costs

• Adj. EBITDA margin excluding fair value movements from biological assets of 18% (Q1 FY23: 23%); margin improvements in Genetics and Advanced Nutrition offset by Health

o Genetics Adj. EBITDA margin excluding FV movements in biological assets increased to 22% (Q1 FY23: 19%)

o Advanced Nutrition Adj. EBITDA margin increased to 24% (Q1 FY23: 23%)

o Excluding Health, Group Adj. EBITDA margin excl. fair value movements from biological assets of 20% (Q1 FY23: 19%)

• Cash, liquidity and net debt:

o Cash of £24.2m and liquidity of £36.4m (cash and available facility)

o Net debt excluding lease liabilities of £57.5m (30 September 2023: £45.6m)

Operational highlights

• Genetics – Solid performance in the core salmon business and progress in growth vectors

o Post period end launch of a new product portfolio in salmon genetics, strengthening the Company’s offering and demonstrating its ongoing commitment to innovation

o Growing commercial traction in Chile with revenue growth underpinned by new customers and repeat orders and strong progress towards profitability

o Successful integration of shrimp activities across Genetics and Advanced Nutrition driving commercial synergies and cost savings

o No impact on the Company’s ability to meet customer demand for salmon eggs following the detection of ISA virus (Infectious Salmon Anaemia) in a single tank at Salten facility post period end. There have been no further signs ISA at the facility or in the specific tank from which the fish originated

• Advanced Nutrition – Strong performance in Europe and well positioned for market recovery

o Strong performance in Europe from marine fish, offset by soft shrimp markets particularly in Asia

o Successful commercialisation of SnappArt post launch with initial supply sold-out, demonstrating the Company’s successful innovation and commercial capability

o Ongoing commercial focus and actions to improve operational efficiency, including equipment improvements, place the business in a strong position for market recovery

• Health – Significant steps taken to transition to new business model for Ectosan® Vet and CleanTreat®

o Further progress made towards development of a new configuration and business model for Ectosan® Vet and CleanTreat® aimed at reducing infrastructure costs

 Continued progress on wellboat configuration and steps to develop a third configuration based on a barge

o Streamlining of existing infrastructure and organisation with demobilisation of one of the two CleanTreat® units, leading to cost savings

Current trading and outlook

Trading in line with management’s expectations for the full year underpinned by good revenue visibility in Genetics, continuing positive performance in Advanced Nutrition and focus on profitable growth with actions to manage costs and cash in Health as the business transitions to a new configuration for Ectosan® Vet and CleanTreat®.