30 November 2023

Key events in Q3

        The Company's sales volume for the first 9 months of 2023 amounted to EUR 9,371,175. This represents a 16% increase compared to the same period in 2022. The growth rate of product sales has slowed down in the 3rd quarter of the current reference period. The traditional low summer season shopper activity was compounded by the relatively high inventories accumulated in previous periods, as well as the slowdown in global economic growth, especially in Europe. Previous demand factors such as COVID-19 and the war in Ukraine are gradually losing their impact on sales figures. Atlantic salmon raw material prices continued to increase in the 3rd quarter, putting additional pressure on profitability figures. 

       For the first 9 months of 2023, the company's profit amounted to EUR 837,729, which is 2.81 times the 2022 figure for the same 9-month period.  It should be noted that significant impact on the profit figures was due to extraordinary income received from the European Maritime, Fisheries and Aquaculture Fund support, in addition to the partial reimbursement of costs, which totalled EUR 403,693.

     Excluding the cost growth compensation component, the profit for the first 9 months of 2023 was EUR 434,036, an increase of EUR 136,862 compared to the corresponding period of 2022.

     The Company's equity as at 30 June 2023 amounted to EUR 3,18 million. or 38.98% of total assets.

     During the reporting period, the Company continued to actively expand its product range. New products are launched in the Atlantic fish group – herring, mackerel. In general, the Company offers its customers products from the Baltic Sea (sprat, herring), the Atlantic (herring, mackerel, salmon) also cod liver, mussels, and tuna. The Company offers its customers both the Banga brand and private brands, the share of which in the reporting period exceeds 45%. As part of the Company's product sales strategy, transactions with new customers were signed in United Arab Emirates and Canada.  At the same time, the Company's client portfolio has been supplemented by buyers from non-traditional markets - such as Chile, Vietnam.

    The renovation and extension of the Company's production infrastructure continues, with funds received from European Maritime, Fisheries and Aquaculture Fund being used to renovate the finished product/stock warehouse. The investment will reduce the cost of storing raw materials and other stocks in third-party warehouses. 

    In July 2023, the Company's production plant took advantage of the summer technological break and the holiday period of the production staff to carry out repairs to the production building and equipment.

    In order to ensure the achievement of the company's indicators in accordance with the long-term plan, to strengthen the sustainability of operations, in the coming periods, the management of the company plans:

• to strengthen contractual relations with the main suppliers of raw materials,
• increase production volumes according to the new technological capacity,
• review the product range and prices with the company's customers.