Trading Update and Notice of Results

Ocean Harvest Technology Group PLC

17 July 2023

 

17 July 2023

Ocean Harvest Technology Group plc

("OHT", the "Company", or the "Group")

Trading Update and Notice of Results

Ocean Harvest Technology Group plc, a leading global producer of animal feed supplements from multispecies seaweed blends, is pleased to provide the following trading update for the six months ended 30 June 2023 (the "Period").

Highlights:

·      Trading for the first half of the year has been significantly ahead of the prior year and the Board remains confident in achieving market expectations for 2023

·      Investment in sales and marketing has delivered 65% year-on year increase in product revenue to approximately €1.6 million (2022 H1: €0.95m)

·      Record customer trial pipeline expected to drive future growth

·      Improved margin efficiencies following a reduction in shipping costs post Covid-19 pandemic

Product revenue growth of approximately 65% has come from new customers, volume growth from existing customers and the increase in average selling prices.

Gross margins in the first half were significantly higher than 2022, largely due to the elimination of selling concessions which OHT had offered to customers in previous years in response to the high shipping costs resulting primarily from the Covid-19 pandemic.

OHT sold product to over 40 customers in the Period, an increase over the circa 30 customers sold to during 2022. These new customers include one of the largest UK animal feed companies and a top 5 swine producer in the US.

The Company has continued to expand its supply chain, sourcing new suppliers in new and existing markets for each of its key seaweed species. OHT has strong visibility for H2 2023 seaweed purchase volumes and recently entered into a strategic arrangement with a supplier of brown seaweed which has guaranteed its supply at attractive pricing for at least the next two years.

As announced on 19 June 2023, OHT reported on some of its recently completed feed trial results which demonstrated the efficacy of Ocean Harvest's OceanFeed™ products and its benefits in a number of applications. OHT's proprietary seaweed blends are delivering strong results in animal performance and production economics in a cost-effective and environmentally sustainable manner. OHT currently has trials in progress or scheduled with over 20 potential customers.

The Company will publish its interim financial statements for the six months ended 30 June 2023 in September and will provide a further update at that time.

Mark Williams, CEO of Ocean Harvest Technology Group, commented:

"We are delighted with the continued strong growth that OHT has achieved in the first half of this year.  Having completed the IPO during this period, we are focused on the ongoing investment in R&D, sales and marketing and our supply chain to continue to drive this growth. We look forward to the future with confidence."

For more information please contact:

Ocean Harvest Technology Group plc	Tel: [phone]
Mark Williams, CEO
finnCap Ltd (Nominated Adviser and Sole Broker)	Tel: [phone]
Geoff Nash / Seamus Fricker / George Dollemore (Corporate Finance) Charlotte Sutcliffe / Harriet Ward (ECM)
Camarco (Financial PR Adviser)	Tel: [phone]
Tom Huddart / Rosie Driscoll / Letaba Rimell	[e-mail]

Notes to Editors

Ocean Harvest Technology Group plc is a global leader in the development and commercialisation of value adding products from multiple species of seaweed. The Company provides a range of natural ingredients focused on improving animal performance whilst protecting the environment, through its unique and proven intellectual property portfolio. The Company's products are produced in its facility in Vietnam from seaweeds soured from multiple markets across the world.

For more information, please visit www.oceanharvesttechnology.com.

 

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