Benchmark Holdings PLC on Thursday reported a weaker financial performance in the third quarter but said recent restructuring efforts should yield benefits going forward amid softer market conditions.
The Sheffield, England-based company aims to drive sustainability in aquaculture by delivering products that improve farming efficiency, animal health, and welfare.
Pretax loss widened to £9.4 million in the third quarter that ended June 30 from £4.3 million a year previous.
Revenue declined 10% to £30.7 million from £34.2 million, while cost of sales were reduced 9.6% to £15.1 million from 16.7 million.
Exceptional items relating to restructuring, acquisition and disposals, increased to £2.6 million from £530,000.
Chief Executive Officer Trond Williksen said: ‘Our two largest business areas, Advanced Nutrition and Genetics, performed well in Q3. In Genetics, it is particularly pleasing to see continued progress in our Chilean business as well as the positive results of the recent reorganisation of our shrimp genetics activities. Our Advanced Nutrition business remains resilient to the continuing soft conditions in the shrimp markets and is well positioned for market recovery.’
Advanced Nutrition revenue grew 4.3% to £16.8 million; Genetics revenue fell 18% to £11.8 million; and Health revenue fell 43% to £2.2 million.
‘In Health we continued to streamline the business, right-sizing our resources to support our Salmosan Vet activities during the planned transition to a new business model for Ectosan Vet and CleanTreat. The restructuring of Health was completed post period end and will result in significant immediate cost savings and a cash positive business,’ Benchmark said.
Looking ahead, Benchmark expects market conditions for Advanced Nutrition to remain soft for the remainder of the year but said there is good visibility of salmon egg deliveries in Genetics, albeit lower than last year.
Benchmark Holdings shares were flat at 38.00 pence each in London on Thursday.
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