Benchmark Holdings PLC (LON:BMK) has said continued weakness in shrimp markets overshadowed a robust second-quarter performance by the group’s genetics business.
In the three months to the end of March – Benchmark’s second-quarter – group revenue eased to £32.0mln from £37.7mln in the corresponding period of 2019.
Revenues in the Advanced Nutrition business fell to £19.9mln from £25.0mln the previous year, which Benchmark ascribed to weak shrimp markets plus oversupply and price competition in the Artemia (brine shrimp) market.
The Genetics division’s revenues held steady at £10.4mln (2019: £10.8mln) while the group's Animal Health division’s revenues were also little changed, at £3.3mln (£3.6mln).
Adjusted underlying earnings (EBITDA) declined to £4.59mln from £5.17mln the year before. The loss before tax narrowed to £13.2mln from £18.9mln the previous year.
"Our results for the first half of the year were disappointing reflecting the weakness in the shrimp markets and oversupply of Artemia, and the additional challenges of (coronavirus) COVID-19 in the latter part of the period. Our salmon business has been more robust in the face of the global lockdown with good visibility, and this, together with a solid cash position after our fundraising in February and our cash conservation plan, gives us confidence in managing Benchmark through this crisis,” Peter George, the executive chairman of Benchmark said in the results statement.
"Our priority continues to be on completing the restructuring of the group to focus on our core aquaculture disciplines, reducing our cost base, increasing efficiency and transitioning from R&D investment into profitability. Longer term the fundamentals of our business are very attractive with an increasing need for products and solutions that enable sustainable food production,” he added.