AKVA group ASA: Q2 2022 financial reportingSource: OMX
Record high revenues with cost related headwinds
AKVA group delivered record high revenue for Q2 of MNOK 907 (832), an increase of 9% compared to Q2 2021. EBITDA decreased from MNOK 79 in Q2 2021 to MNOK 3 in Q2 2022. The Net Profit decreased from MNOK 16 last year to MNOK -41 in Q2 2022.
The order intake in the quarter was MNOK 827 with a backlog of BNOK 1.8 at the end of June 2022.
Profitability negatively impacted by estimated MNOK 102 from high inflation rates and one-time cost provisions.
During Q4 2021 AKVA group experienced somewhat challenging profit margins due to cost inflations and global supply chain restrictions. This has been further intensified in H1 2022 due to the war between Ukraine and Russia. Examples include increased freight rates, high energy prices and increased price level on raw materials and key components in general.
Sea Based Technology (SBT)
SBT revenue for Q2 2022 ended at MNOK 736 (716). EBITDA and EBIT for the segment in Q2 ended at MNOK 40 (95) and MNOK 3 (54), respectively. The related EBITDA and EBIT margins were 5.5% (13.3%) and 0.5% (7.5%), respectively.
Order intake in Q2 2022 was MNOK 704 compared to MNOK 735 in Q2 2021. Order backlog ended at MNOK 902 compared to MNOK 848 last year.
The revenue in the Nordic region ended at MNOK 453, a decrease from MNOK 490 in the second quarter last year.
In the Americas region, the revenue was MNOK 179, which is an increase from 123 MNOK in the second quarter last year.
Europe and Middle East (EME) had a revenue of MNOK 104 in Q2 2022, identical to the revenue of MNOK 104 in the second quarter last year.
Land Based Technology (LBT)
Revenues for the second quarter were MNOK 145 (97). EBITDA and EBIT ended at MNOK -41 (-20) and MNOK -45 (-23), respectively. The related EBITDA and EBIT margins were -28.5% (-20.8%) and -31.2% (-23.3%).
Order intake in Q2 2022 was MNOK 96 compared to MNOK 116 in Q2 2021. Order backlog ended at MNOK 779, compared to MNOK 948 last year.
The revenue in the segment was MNOK 26 (18) in Q2 2022. EBITDA and EBIT ended at MNOK 5 (4) and MNOK 1 (1), respectively. The related EBITDA and EBIT margins were 17.8% (22.3%) and 2.1% (5.4%).
Working capital as a percentage of 12 months rolling revenue is 13.6% (12.1%). Cash and unused credit facilities amounted to MNOK 637 (322) at the end of Q2. Total assets and total equity amounted to MNOK 3,507 and MNOK 1,270 respectively, resulting in an equity ratio of 36.2% (29.8%) at the end of Q2 2022.
The Company’s main objective is to maximize the return on the investment made by its shareholders through both increased share prices and dividend payments. Due to the challenging first half year of 2022 the company has decided not to pay any dividend in the second half of 2022.
The order backlog at the end of Q2 was MNOK 1,769 (1,862). MNOK 779 or 44% of total order backlog at the end of Q2 relates to Land Based Technology (LBT).
The order backlog and the financial profile remains strong and forms a good foundation to execute on the organic growth strategy. The global instability and uncertainty related to supply chain restrictions and cost inflations may continue to impact the profitability on short term.
Based on the underlying demand for salmon the Group believes in strong market growth. To meet the future demand a significant part of the production will come from land-based facilities or other unconventional production methods. Hence, the Group expects a continued strong market for the Sea Based segment, while for the Land Based segment there will be a potential for exponential growth.
Digital products are an important part of AKVA groups total product offering and the company will continue to invest and develop attractive solutions, both within Sea Based and Land Based Technology.
About AKVA group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 1 488 employees, offices in 11 countries and had a total turnover of NOK 3.1 billion in 2021. We are a public listed company operating in one of the world’s fastest growing industries and supply everything from single components to complete installations, both for sea farming and land based aquaculture. AKVA group is recognized as a pioneer and technology leader through more than 40 years.
Dated: 12 August 2022
AKVA group ASA
|Knut Nesse||Chief Executive Officer|
|Phone:||+47 51 77 85 00|
|Mobile:||+47 91 37 62 20|
|Rony Meinkøhn||Chief Financial Officer|
|Phone:||+47 51 77 85 00|
|Mobile:||+47 98 20 67 76|
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act