Full Year 2024 Clean Seas Seafood Ltd Earnings Call Transcript
Key Points
- Clean Seas Seafood Ltd (CTUNF) has successfully completed an operational review, resulting in a right-sized business with sales and production in equilibrium.
- The company maintained resilient fresh pricing at $22.93 per kilo for FY24, slightly higher than FY23, indicating strong market positioning.
- Feed prices have declined from their peak, and current orders are placed at FY23 price levels, which should positively impact future profitability.
- The consolidation of farming operations onto a single site has reduced operational complexity and costs, enhancing efficiency.
- The introduction of the automated feed barge, Eyre Spirit, is expected to significantly reduce production costs and improve operational stability.
- Operating profit declined from $1.21 per kilo in FY23 to negative $1.61 per kilo in FY24, primarily due to high feed prices and clearance of frozen inventory.
- Revenue fell slightly to $68.8 million despite higher volumes, impacted by lower frozen prices and increased freight costs.
- The company reported an operating EBITDA loss of $5.1 million, reflecting challenges in managing costs and market conditions.
- Net debt increased by $10.1 million over FY24, leading to a gearing ratio of 24%, which may impact financial flexibility.
- The European market proved challenging with increased competition and cost of living impacts, leading to aggressive discounting of frozen stock.
Okay. Hello, everyone, and thank you for joining Clean Sea Seafoods full-year FY24 results webinar. My name is Rob Gratton, Clean Seas' CEO, and also on our call is CFO, David de Blasio. You may have noticed that for security reasons, we have disabled microphones and video cameras. However, there will be an ability to ask questions at the end of the meeting. (Event Instructions) I also let you know that we are recording this presentation, and we will be posting it to our website if you'd like to go back and have a look at another time. But for now, on the presentation.
In the past, we've spoken about challenging market conditions and increases in feed prices. And in response to these challenges, in November last year, we announced an operational review and a placement to be used for working capital to facilitate the rightsizing of the business operations and to execute on the key focus areas of the review.
In many ways, the results that we are reporting today reflects the reasons why we undertook
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