Benchmark Holdings PLC has released its unaudited results for the first quarter of fiscal year 2024, ending on 31 December 2023. The company reported a 26% decrease in revenues compared to the same period in the previous year, but a 11% increase from the previous quarter. The Genetics and Advanced Nutrition segments performed well, while the Health segment faced challenges due to biological issues with customers' fish stock. The company's gross profit margin was maintained at 45%, and the Adjusted EBITDA excluding fair value movements from biological assets was £7.5m, a decrease from the previous year.
In the Genetics segment, Benchmark saw a solid performance in its core salmon business and made progress in growth vectors. The company also launched a new product portfolio in salmon genetics and reported growing commercial traction in Chile. In the Advanced Nutrition segment, Benchmark experienced strong performance in Europe and successfully commercialized SnappArt. However, the soft shrimp markets in Asia posed challenges. The Health segment took significant steps to transition to a new business model for Ectosan® Vet and CleanTreat®, including the development of a new configuration and business model aimed at reducing infrastructure costs.
The company's current trading is in line with management's expectations for the full year, underpinned by good revenue visibility in Genetics, positive performance in Advanced Nutrition, and a focus on profitable growth with actions to manage costs and cash in Health as the business transitions to a new configuration for Ectosan® Vet and CleanTreat®. Benchmark Holdings PLC reported a net debt excluding lease liabilities of £57.5m, an increase from the previous quarter.
Overall, Benchmark Holdings PLC's Q1 2024 results reflect a mixed performance across its business segments, with solid performance in Genetics and Advanced Nutrition, and challenges in the Health segment due to biological issues faced by customers. The company is taking steps to manage costs and cash as it transitions to a new business model in the Health segment.