Benchmark reports earnings up in first half
BENCHMARK Holdings reported a reduced operating loss in the six months ended March 31, 2018, from £6.7 million to £6 million.
The aquaculture health, genetics and advanced nutrition business increased revenue by nine per cent to £75.7 million (H1 2017: £69.2 million).
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 91 per cent to £6.3 million (H1 2017: £3.3 million) driven by revenue growth in higher margin nutrition and genetics products, and despite a £2.1 million reduction in the animal health division.
The increase in net debt to £41.3 million was as expected, said the company, primarily due to £15.1 million capital expenditure, which included investment associated with the field trials of Benchmark’s new sea lice treatment.
The advanced nutrition division saw 16 per cent growth, driven by high demand for specialist diets and health products in most markets and particularly in India.
There was also continued demand for genetics products, with revenue up 11 per cent.
Malcolm Pye, CEO of Benchmark, said: ‘The group has delivered good organic revenue growth and improving profitability on an adjusted basis, while we continued to invest in our pipeline of new products and infrastructure.
‘The outlook for the group is positive as the drivers for our business are stronger than ever before, with continued growth in aquaculture and increasing recognition from consumers, producers and regulators of the need for sustainable solutions to enable future growth.
‘Overall, we remain on track to achieve our expectations for the current year, and are confident of Benchmark’s capacity to generate attractive returns in the years to come.’
Above: Malcolm Pye, CEO of Benchmark