Barramundi Group pivots toward Brunei after losses continue in H1 2023

Barramundi Group posted a net loss of SGD 5.3 million (USD 3.9 million, EUR 3.6 million) in H1 2023 on flat revenue, but managed to decrease expenses following the sale of its Australian assets.

Barramundi Group, which also operates the UVAXX fish health and autogenous vaccine company, is planning a pivot toward Brunei as it winds down its farming operations in Singapore, where it is based.

After failing to spin off its Western Australian operations, Barramundi Group divested from them through a sale to Tassal in July 2023. The company also shut down farming in Singapore after struggling with scale drop disease virus. It replaced its CEO in October 2022 and suffered a board exodus in May 2023.

The company posted a negative earnings before interest, taxes, depreciation, and amortization (EBITDA) of SGD -3.8 million (USD -2.8 million, EUR -2.6 million) in the period, up from SGD -2 million (USD -1.5 million, EUR -1.4 million) in H1 2022. Its revenue dropped slightly to SGD 16.6 million (USD 12.3 million, EUR -11.3 million) from SGD 16.9 million (USD 12.5 million, EUR 11.5 million), but it more than halved its losses from its H1 2022 figure of SGD 12 million (USD 8.9 million, EUR 8.1 million) due to “aggressive cost-cutting measures,” Barramundi Group CEO James Kwan wrote in a letter to shareholders.

Barramundi Group spent the first half of 2023 aiming to “right the ship to an even keel,” Kwan said.

“Eliminating the financial drain from our Australian business allows us to realign our focus towards strengthening our aquaculture production through our operations in Brunei,” he said. “With over 8,000 hectares of sea and land leases, a fully operational recirculating aquaculture system (RAS) nursery, and a UVAXX diagnostic lab in Serasa, Brunei is unequivocally central to our future growth strategy.”

Barramundi Group sold 714 metric tons whole-fish equivalent in H1 2023, as opposed to 930 MT WFE in the first half of 2022. The firm’s total equity was ... 

Photo courtesy of Barramundi Group