LONDON (ShareCast) - (Sharecast News) - Benchmark reported a 17% improvement in revenues year-on-year in its third quarter on Tuesday to £28.3m, or 25% at constant exchange rates, with "strong" performance across all of its business areas.
The AIM-traded genetics and aquaculture company said revenues in genetics were 21% higher than the prior year in the three months ended 30 June, driven by higher sales of salmon eggs.

In advanced nutrition, revenues were 15% firmer, which the board put down to growth across all of its product lines, and continuing good performance.

Finally, health revenues were 20% above the third quarter of 2020, benefiting from higher Salmosan sales.

Adjusted EBITDA "more than doubled" to £4.4m, as a result of higher revenues, operational improvements and continuous cost control.

Looking at the year-to-date, group revenues were 9% higher than the prior year, and adjusted EBITDA was 26% firmer, from continuing operations.

Benchmark said its liquidity totalled £51m of cash and available facilities as at 23 August.

On the operational front, the firm launched 'Ectosan Vet', formerly BMK08, and 'CleanTreat' after the quarter ended, with the first sea lice treatments delivered successfully.

Also after the period ended, the group received marketing authorisation in Norway for Ectosan Vetm and the maximum residue limit (MRL) was adopted into the agreement of the European Economic Area, completing the regulatory steps for commercialisation.

The first treatments were successfully delivered in August, with Ectosan Vet the first new sea lice medicine to come to market in more than a decade.

Good commercial and operational momentum in advanced nutrition was continuing with "strong growth" year-on-year, while expansion projects for salmon and shrimp genetics in Iceland, Fellsmere and Chile were progressing according to plan.

The firm was continuing to win new contracts for future delivery in the emerging land-based salmon segment, the board said.

Looking at the wider market environment, Benchmark said the reopening of the hospitality sector was creating a positive outlook, while conditions in the salmon industry were "positive", with a recovery in prices after a drop related to Covid-19, and demand growth still exceeding global supply.

The shrimp market was recovering with the potential to bounce back to pre-Covid-19 levels, despite continued hardships due to the pandemic in certain markets, while the seabass and seabream market had "substantially" recovered.

Benchmark said it was trading in line with market expectations for the full year, with "good" revenue visibility for the rest of the year.

Looking towards the 2022 financial year, a consistent performance was expected to continue in genetics and advanced nutrition, while the board said the health division would start to benefit from the Ectosan Vet and CleanTreat revenue streams.

"We are very pleased with the results and progress in the third quarter, and the subsequent period," said chief executive officer Trond Williksen.

"Our three business areas performed strongly, and we achieved a major strategic milestone with the successful commercial launch of Ectosan® Vet and CleanTreat.

"We now have the basis to have three profitable business areas moving the group closer to overall profitability."

Williksen said there was "good momentum" in the business following the streamlining exercise conducted in 2020, and the adoption of a new commercial focus.

"Our end markets are gradually recovering from the impact of Covid-19, creating a positive environment for our business.

"All this provides confidence in our ability to deliver full year results in line with market expectations as well as progress in future years."

At 1014 BST, shares in Benchmark Holdings were up 4% at 62.4p.

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