Diversified model at biotech firm offers resilience in face of headwinds

Aquaculture biotechnology company, Benchmark, says its quarter three FY23 revenues of £34.3m were down 6% on the prior year, as it publishes both its third quarter and year-to-date results.

For the same period, the Sheffield-based business recorded a pre-tax loss of £4.7m (Q3 2022: £11.2m loss).

Quarter three year-to-date FY23 revenues were £133.1m, 15% ahead of the prior year, driven by growth in Genetics and Health, while the company’s Advanced Nutrition revenues were in line with the prior year. Pre-tax losses narrowed significantly to £6.6m (Q3 year-to-date 2022: £16.4m loss).

Trond Williksen, CEO, said: “Our Q3 trading reflects the anticipated low season for our Health solutions in the salmon industry, as well as the continuing adverse market conditions in the global shrimp market.

“Despite these headwinds we have delivered strong year-to-date results, with double digit growth in revenues and earnings compared to the prior year.

“For the remainder of the year we have good visibility in Genetics and are moving into the main season for sea lice treatments in Health.

“Notwithstanding the prevailing market conditions for Advanced Nutrition, we continue to demonstrate momentum in our business and the resilience of our diversified business model to face cyclical fluctuations in our end markets.”

Benchmark notes it is trading within market expectations for FY23.

It expects its Advanced Nutrition operations will continue to be influenced by weak global shrimp market conditions, while its Health arm is expected to benefit from seasonal increase in sea lice treatments during quarter four.