Profit statements

Increased sales allow Clean Seas to return to profit

Record sales of $31.3 million for the six months to the end of December buoyed South Australian trevally farmer Clean Seas Seafood after a few loss-making years.

The listed company announced to the Australian Securities Exchange this morning that it sold a record 1,946 tonnes of trevallies in the first half of FY22, generating $31.3 million in revenue.

This was boosted by price increases to $18.25 per kilo in the December quarter, with the revenue result up 40% from the first half of last year and 28% ahead of 2020.

The result follows a strong September quarter that generated revenue of $14.8 million.

It is also likely to drive the company back to profit after posting a loss of $32 million in the previous fiscal year and a loss of $14 million in 2019-20.

The increase in sales over the six-month period was driven by Clean Seas’ two largest markets, Australia (up 29% to 1,009 tonnes) and Europe (up 75% to 770 tons).

He said the increase in Australian sales was partly due to the national roll-out of a number of retail products with Woolworths.

A secondary listing last year on Euronext Growth Oslo (OSE) – the main exchange for high-growth seafood companies – also appears to support Clean Seas’ European performance.

However, sales in North America (down 27% to 146 tons) and Asia (down 10% to 21 tons) were down compared to the previous year.

In its statement to the ASX today, Clean Seas said it has also disposed of all excess frozen stock and completed the harvesting of high cost surplus fish, which has helped lower costs.

The Adelaide-based company has also completed stocking its new Fitzgerald Bay site near Whyalla with juvenile king mackerel, which is a key part of its plan to double production to 10,000 tonnes per year.

The Fitzgerald Bay farm is expected to be Clean Seas’ largest site with a capacity of over 4,000 tonnes of yellowtail amberjack.

Clean Seas reactivated farming in Fitzgerald Bay last year for the first time since around 2010, despite some concerns about the impact on a nearby Australian giant cuttlefish population.

Clean Seas CEO Rob Gratton said the company was delighted to report another record sales result.

“Demand and appreciation for our premium fish continues to grow globally, a testament to our successful diversification and our team’s ability to highlight quality, flexibility and provenance only achievable. by cultivating a native species in its natural waters,” he said.

“Our ability to eliminate excess inventory and generate record positive cash flow again supported the evidence of our financial model.”

Clean Seas is headquartered in its Royal Park processing plant, while its hatchery is in Arno Bay and its Spencer Gulf fish farms are in Port Lincoln, Arno Bay and Fitzgerald Bay on the Eyre Peninsula.

Meanwhile, another publicly traded company, Spacetalk, also reported strong first-half numbers on the ASX this morning.

The smartwatch company reported a 50% increase in revenue for the six months ending December 31 to $12.3 million following expansions in North America and Northern Europe in November.

Annualized recurring revenue (ARR) from monthly subscriptions to the company’s Spacetalk app increased 52% to $3.5 million, while six-month device sales increased 57% to reach $9.9 million.

However, revenue from the company’s school courier services fell 10% to $900,000, which it attributed to two years of COVID-19-related disruptions, particularly in New South Wales and New South Wales. Victoria.

Spacetalk CEO Mark Fortunatow said the findings demonstrate the strategic value of the company’s ownership and control over its own technology.

“It’s been a little over four years since we launched our wearables business. During this time, our wearables distribution has spanned three continents and generated cumulative revenues of over $37 million,” he said.

“And we did that by staying true to our brand and our values ​​of security and reliability, including respecting our customers’ privacy and data.

“I am delighted with our progress to date and remain excited about the opportunities ahead of us.”

Share prices for Clean Seas and Spacetalk responded positively to the announcements with Clean Seas up 5% at $0.60 and Spacetalk up 12% for the morning at $0.18 midday.

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