US withdrawal hits Kingfish Co results – it needs more money
Fourth-quarter results were weaker than expected for the Dutch yellowtail farmer. Managers no longer believe the company will be cash flow positive from operations during the year, and have therefore initiated talks about a new share issue.
Kingfish Company writes in its Q4 report that it continued to grow in Q4 2025, but at a slower pace than earlier in the year.
"Results were impacted by the planned discontinuation of commercial fresh fish operations in the US at the end of Q3 2025," the company reports.
On a comparable basis, excluding fresh sales in the US, sales increased by 21% year-over-year in the quarter.
“Market conditions were competitive in the quarter, with a temporary increase in the availability of wild-caught fish putting pressure on prices and volumes in several European markets. Towards the end of the quarter, the market began to normalise, and demand remained robust through the holiday season,” the directors report.
Production update
The company says production normalised in the quarter, supported by stable biological performance. It continued to increase the proportion of larger fish in the biomass, in line with its medium-term production strategy.
Prospects and financing
Overall, Q4 2025 was weaker than expected.
"The company expects not to comply with the EBITDA financial covenant as at year-end 2025. In addition, based on current trading and ramp-up assumptions, the company expects to be EBITDA positive in 2026, but no longer expects to be cash flow positive from operations during that year," Kingfish Co reports.
It has therefore initiated dialogue with key stakeholders on the capital structure and financing solutions, which may include the issuance of new equity.
These discussions are ongoing and aim to ensure that the company has sufficient financing to support the ramp-up towards full capacity utilisation at the facility and to maintain compliance with the financial loan covenants, directors write.
