AquaBounty Technologies losses widen in Q2 as revenue drops

AquaBounty Technologies reported a drop in revenue and widening losses in Q2 2023 as lower salmon prices hit the company’s bottom line.

The recirculating aquaculture system (RAS) company reported revenue of USD 788,000 (EUR 720,000) in Q2 2023, a 26 percent drop from the USD 1.1 million (EUR 1 million) it reported in Q2 2021. While the Company’s revenue dropped by USD 312,000 (EUR 285,000), it’s losses widened by USD 1 million (EUR 914,000), increasing from USD 5.5 million (EUR 5 million) in Q2 2022 to USD 6.5 million (EUR 5.9 million) in Q2 2023. 

Cash and cash equivalents and restricted cash was also much lower, sitting at USD 43.8 million (EUR 40 million)  as of 30 June, 2023, compared to USD 102.6 million (EUR 93.8 million) as of 31 December, 2022.

"Our second quarter results were impacted by a significant decline in market prices for Atlantic salmon, despite the fact that our Indiana farm had its highest quarterly output to date," AquaBounty CEO and Board Chair Sylvia Wulf said.

The poor performance in Q2 2023 follows a similarly poor Q1, in which the company posted a 59 percent year-over-year decrease in revenue from USD 963,000 (EUR 880,000) in Q1 2022 to USD 398,000 (EUR 364,000).

For H1 2023, the company has lost just under USD 13 million (EUR 11.8 million), up from the USD 10.6 million (EUR 9.6 million) it lost in H1 2022.

Despite the widening losses, Wulf remained optimistic about the company’s salmon.

“The demand for our fish continues to exceed our supply and we continue to identify opportunities to increase our production to meet this demand,” Wulf said.

The company’s biggest opportunity to increase its salmon production, however, is now paused. The company announced plans for a new RAS facility in July 2021, to be located in Pioneer, Ohio, U.S.A. The company broke ground in April 2022, but in June 2023, it announced it was pausing construction.

The pause, it said at the time, was related to rapid cost escalations that pushed the estimated price tag from the initial USD 200 million (EUR 182 million) the company predicted to north of USD 395 million (EUR 361 million).

In its latest financial update, Wulf said the company is continuing to evaluate the cost estimates and its options for moving forward, including “alternative financing solutions.”

“We previously announced our entry into a contractual commitment with a new construction firm who is assisting us in evaluating construction costs and who would lead construction of the facility going forward,” she said.

The company is moving forward on increasing its egg production, however. AquaBounty told SeafoodSource in February that it has identified new opportunities for salmon egg sales, and is thus planning to expand its facilities on Prince Edward Island, Canada.

"Progress continues on the expansion of our broodstock and egg production capabilities at our farm on Prince Edward Island,” Wulf said.  “We continue to explore new business development opportunities which leverage our core strengths, and which could be applied to new species, including conventional salmon and other finfish, and new geographical territories worldwide.”  

Photo courtesy of AquaBounty