Yokohama, Japan / Bergen, Norway 15 November 2024 – Proximar today reported its third quarter 2024 results. The company’s first harvest was sold at premium prices, well above import prices for Norwegian salmon. Actions to tackle the high turbidity is progressing well.
“Proximar is the first producer of Atlantic salmon in Japan, years ahead of the competition. We are now finally able to supply the Japanese population with domestically produced Atlantic salmon. The premium price achievement for our fish in the market is another confirmation of our business model, demonstrating the significant cost advantage of local production in Japan,” says Joachim Nielsen, CEO of Proximar Seafood.
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Proximar Seafood is a Norwegian land-based salmon farming company with its first production facility at the foot of Mount Fuji in Japan. Targeted annual production capacity is 5 300 tonnes, and the facility is expected to reach full utilization in 2027.
Highlights of the third quarter of 2024:
• Successful first harvest and first sales achieving premium pricing of NOK ~130/kg
• Strong brand awareness and recognition following launch strategy of Proximar’s Fuji Atlantic Salmon gaining significant media attention in Japan
• Continued build-up of biomass, reaching 733 metric tonnes by the end of Q3 2024 (vs 360 metric tonnes at the end of Q2 2024 and 877 metric tonnes by mid-November)
• Increased operational activity in the post-smolt grow-out building, with 9 batches transferred into the two operating modules by the end of Q3 (10 by mid-November)
• Good progress towards the completion of the two last modules in the grow-out building by the end of the year (the third module is completed, planned transfer of first fish in November)
• Several measures implemented to address turbidity, resulting in restricted feeding in the grow-out during Q3. Measures are already showing positive results, with turbidity dropping to low levels (clear water) for the module which is currently receiving full dosage
• The ~NOK 30m in extra CAPEX reported in Q2 and additional working capital were funded by sale of own convertible bonds (NOK 40m) and new loans in Japan (~NOK 75m).
First harvest sold at NOK ~ 130/kg - confirming price premium
The first sales confirmed Proximar’s pricing expectations and the significant cost advantage of local production in Japan, achieving an average price of NOK ~130/kg, which translates to approx. 10% premium comparing to imported salmon from Norway, using the relevant benchmark.
“We continue to see strong interest from high-end buyers and are very pleased to see how our fish has been accepted in the market, not only through price achievement but also seen in the demand. We are the only company that can deliver fresh, domestic Atlantic salmon to Japanese consumers, and we see strong enthusiasm also among the consumers. Proximar’s Fuji Atlantic Salmon has already received top quality remarks from customers and consumers,” Nielsen states.
Proximar’s brand and logo were officially launched in Japan in October at a launch event at our partner Marubeni Corporation’s head quarter in Tokyo, attended by 18 media channels. External attention after launch has been very strong, resulting in increased awareness and creating additional interest. Through the sales in supermarkets, emphasis on the brand and product are clearly being communicated, building consumer awareness. The Company believes the strong enthusiasm in Japan for «Fuji Atlantic Salmon» is partly a result of being the first and only supplier of domestic Atlantic salmon combined with our location from the foot of Mt Fuji.
Turbidity and harvesting plan
There have been issues with the turbidity of the water, implying reduced feeding and slower growth in the grow-out building. The ozone system has now been installed and is currently providing full dosage to one module (module C), demonstrating very clear results and reducing turbidity significantly. The last modules will be ready to receive full dosage this month, and the Company expects the turbidity to return to normal levels thereafter.
The lower growth rates, together with customer timing preferences, are impacting the company’s planned harvest volumes for 2024. The Company plans to harvest approx. 80 tonnes this year, pushing the remaining volumes previously scheduled for harvest in 2024 into Q1 2025. However, the company reiterates the expected combined 24/25-harvest at 4 700 tonnes. Proximar continues to expect the full capacity of phase 1 of 5,300 tonnes to be reached in 2027.
Proximar Seafood will host a webcast presenting the results for the third quarter of 2024, today at 09:00 CEST. The investor presentation will be hosted by CEO Joachim Nielsen and CFO Ole Christian Willumsen. The presentation will be held in English and questions can be submitted throughout the event. The streaming event is available at Proximar Q3 2024 • WN Event
For further information, please contact: Ole Chr. Willumsen, CFO, +47 48 21 34 29 ocw@proximar.com
About Proximar Seafood
Proximar Seafood is a Norwegian land-based salmon farming company with its first production facility and production at the foot of Mount Fuji in Japan. The company inserted its first batch of eggs in October 2022 and carried out its first harvest on 30 September 2024. Proximar’s brand and logo (Fuji Atlantic Salmon) were officially launched in October at our partner Marubeni Corporation’s head quarter in Tokyo.
Through land-based salmon farming, using high-quality groundwater secured close to Mount Fuji, the company produces fresh Atlantic Salmon, harvested the same day. Proximar’s location, near one of the world’s most important fish markets, implies significant advantages, both in terms of reduced cost and carbon footprint.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. The information was published on 15 November at 07:00 by Ole Christian Willumsen, CFO.
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