Release Date: June 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Benchmark Holdings PLC (STU:31B, Financial) completed the Genetics deal, providing significant proceeds and leaving the company debt-free.
- The company has announced a proposal to return capital to shareholders, including a special dividend and a tender offer.
- Advanced Nutrition showed improved performance with a better product mix and increased adoption of new and existing nutrition solutions.
- The Health business area is now restructured, profitable, and cash positive, primarily based on Salmosan sales.
- Operational costs have been reduced by 13% in the first half, with further cost reductions expected from ongoing corporate streamlining.
Negative Points
- Revenues are down compared to last year, primarily due to changes in the Health business and ForEx headwinds in Advanced Nutrition.
- Adjusted EBITDA has decreased compared to the first half of last year, partly due to lower revenues and gross margins in Advanced Nutrition.
- The shrimp market continues to present challenging conditions for Advanced Nutrition.
- Sales in the Health business fell by 73% at a constant exchange rate, mainly due to the exit of Ectosan from the market.
- The company faces uncertainty related to announced US trade tariffs, which could impact future performance.
Q & A Highlights
Q: Can you provide an update on the Genetics deal and its impact on the company's financials?
A: Trond Williksen, CEO, explained that the Genetics deal was completed at the end of Q2, providing significant proceeds that have been used to repay debt, leaving the company debt-free. This transaction is reflected in the financials for the first half of the year and has led to corporate streamlining, positioning the group for future growth.
Q: How has the Advanced Nutrition segment performed in the first half of the year?
A: Trond Williksen, CEO, noted that Advanced Nutrition saw improved performance in Q2, driven by a better product mix and increased adoption of nutrition solutions. Despite challenging market conditions in the shrimp market, the segment benefited from positive conditions in the marine fish market in the Mediterranean.
Q: What are the financial highlights for the first half of the year?
A: Septima Maguire, CFO, reported that revenues were down 17% at constant exchange rates, primarily due to the exit of Ectosan from the Health segment. However, operational costs were reduced by 13%, and adjusted operating profit improved to GBP2.4 million. The company also saw a significant reduction in depreciation and amortization costs.
Q: What is the outlook for the Health business area?
A: Trond Williksen, CEO, stated that the Health segment is now smaller but profitable and cash positive, primarily based on Salmosan sales. The company is working on relaunching Ectosan with a new business model, subject to sufficient customer uptake.
Q: What are the strategic plans for returning capital to shareholders?
A: Trond Williksen, CEO, mentioned that the Board has proposed returning capital to shareholders, including delisting from AIM and Euronext Growth, and offering a special dividend. These proposals are subject to shareholder approval at the EGM on June 18.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
