Benchmark Holdings PLC has released its unaudited Q3 and year-to-date results for the three and nine months ended 30 June 2023. In Q3 FY23, revenues were 6% below the prior year, with growth in Genetics offset by lower revenues in Advanced Nutrition due to ongoing softness in shrimp markets. Health revenues were broadly in line with the prior year. Adjusted EBITDA excluding fair value movements from biological assets was 29% below the prior year, primarily due to lower revenues, adverse forex, and quarter-specific factors. Adjusted operating loss was £1.7m. However, loss before tax reduced substantially to £4.7m, mainly due to a reduction in net finance costs as a result of forex movements and mark to market movements in the value of financial derivatives.
In the year-to-date period, revenues were 15% ahead of the prior year, driven by growth in Genetics and Health, while Advanced Nutrition revenues were in line with the prior year. Adjusted EBITDA excluding fair value movements from biological assets was 27% ahead of the prior year, primarily driven by growth in Health and resilience in Advanced Nutrition. Adjusted operating profit excluding fair value movement in biological assets more than tripled to £9.7m. Loss before tax significantly reduced to £6.6m. Operating cash significantly improved to £11.2m inflow compared to the prior year. The company had cash of £32.9m and liquidity of £45.1m as of 30 June 2023. Net debt (excluding lease liabilities) reduced year on year to £45.7m.
In terms of business area highlights, Advanced Nutrition saw a drop in revenues due to conditions in the global shrimp markets, but Q3 adjusted EBITDA was 20% above Q3 2022 due to product mix, lower freight costs, and ongoing efficiency programs. Genetics saw revenue growth driven by higher sales of salmon eggs and harvest revenues, but Q3 adjusted EBITDA was 44% below the prior year due to higher third-party production costs, lower capitalization of biological asset production costs, and forex headwinds. Health revenues were broadly in line with the prior year, and the company is making progress in the development of the new configuration and business model for CleanTreat® with partners MMC and SALT.
Benchmark Holdings expects trading to be within market expectations for FY23. Good visibility is expected in Genetics for the remainder of the year, while Advanced Nutrition will continue to be influenced by weak global shrimp market conditions. Health is expected to benefit from a seasonal increase in sea lice treatments during Q4. The company continues to focus on profitability and cash generation driven by commercial success and integration synergies.