Ocean Harvest Technology Group PLC has released a trading update following the conclusion of the first half of 2024. The company has been focused on implementing new initiatives to realize the sales growth potential of its OceanFeed patented blended seaweed product into its target markets. This includes the appointment of a new Chief Commercial Officer, additional sales personnel, and two new Directors with relevant industry experience. These efforts have resulted in the onboarding of new customers and distributors, with seven new customers in the first half of the year and two more in July, expected to drive growth in 2025.
The gross margin on the company's core OceanFeed product increased to 41% in the first half of 2024, up from 38% in the same period in 2023. However, reported revenue for the first half of 2024 is anticipated to be approximately €950,000, a 46% decrease from the previous year. This decline is primarily due to the fact that the company's two largest customers from 2023 have not yet placed orders this financial year. Despite this, product revenue saw an increase of around 15% in the first half of 2024.
Ocean Harvest Technology Group PLC has made significant progress in sales and marketing, aiming to access a wider geographic area and increase the use of indirect sales channels. The company has appointed a Chief Commercial Officer, hired new sales resources in Latin America and South East Asia, and brought on two new Independent Non-executive Directors with substantial industry experience. These efforts have already shown early traction, with new customers in Europe and new distributors in Europe and Central America.
The company expects these initiatives to drive growth in 2025 and beyond and remains positive about its growth outlook. Despite the lower revenue, the company has access to additional funding through its largely undrawn working capital facility of up to €2 million, subject to the company's trade receivables balance. The company intends to provide further guidance on its outlook with its first-half 2024 results in September.