Blue Star Foods Provides 2024 Revenue Guidance of At Least 65% Growth With Anticipated Annual Run-Rate Greater Than $20 Million

Rhea-AI Summary

Blue Star Foods Corp. (NASDAQ: BSFC) has projected significant revenue growth for 2024, with an estimated increase of at least 65%. The company anticipates an annual run-rate exceeding $20 million, attributing this growth to new business opportunities, particularly at its Canadian steelhead salmon facility.

Blue Star reported a 19% revenue increase in Q1 2024 compared to Q1 2023. CEO John Keeler expressed optimism about the company's growth trajectory, citing a robust pipeline of potential opportunities that are expected to support continued growth through 2024-2025.

Positive

• Projected 65% revenue growth for 2024.
• Anticipated annual run-rate greater than $20 million.
• 19% revenue increase in Q1 2024 compared to Q1 2023.
• Expansion of customer base at Canadian facility for steelhead salmon.
• Robust pipeline for new business opportunities.

Negative

• None.

Financial Analyst

Blue Star Foods Corp. has announced a projected 65% revenue growth for 2024, aiming for an annual run-rate exceeding $20 million. While such forecasts are promising, it’s vital to scrutinize the underlying assumptions. The company's prior 19% revenue increase in Q1 2024 over Q1 2023 shows positive momentum. However, 65% growth is a significant leap, so investors should consider potential risks like market demand, operational scalability and external factors such as commodity prices. Additionally, the impact of securing new customers at its Canadian facility for steelhead salmon could be a double-edged sword if these relationships do not meet expectations.

In the short term, this forecast can boost investor confidence, potentially increasing stock value due to perceived growth potential. Long-term success, however, hinges on how well Blue Star can manage expansion without diluting profit margins or encountering operational bottlenecks. Investors should watch subsequent earnings reports closely for consistent performance and transparency in achieving these ambitious goals.

Market Research Analyst

The seafood industry, particularly the Recirculatory Aquaculture Systems (RAS) market, is experiencing a burgeoning interest due to its sustainable and environmentally friendly approach. Blue Star Foods' guidance for 2024 capitalizes on this trend, indicating a robust pipeline and an expansion of their customer base. From a market perspective, the company's strategic positioning within the ESG space aligns with increasing consumer and regulatory demands for sustainable practices. However, market conditions can be volatile. The industry's dependency on ecological factors and regulatory policies can introduce unpredictability.

For retail investors, it's important to understand that while the growth projections are appealing, external market dynamics and competition levels should also be factored into evaluation. The company's ability to differentiate and maintain its niche in the sustainable seafood market will be pivotal. Strategic moves and market adaptability will be key determinants of whether this growth is sustainable.

Sustainability Expert

Blue Star Foods’ emphasis on Environmental, Social and Governance (ESG) principles and RAS technology speaks to a broader trend towards sustainability in the seafood industry. By leveraging RAS, which recycles water and reduces environmental impact, the company aligns itself with growing ecological concerns and governmental regulations aimed at reducing overfishing and habitat destruction. This can strengthen its market position and appeal to environmentally conscious consumers and investors. However, the sustainability of such operations also depends on the efficiency and technological advancements of the RAS systems themselves.

Investors should consider the long-term viability of Blue Star’s commitment to ESG principles. The potential for attracting ESG-focused funds is high, but the company must consistently demonstrate tangible environmental benefits and operational efficiency to maintain credibility in this space. Monitoring Blue Star’s adherence to sustainability promises and technological improvements in RAS will be critical for assessing future performance.

Seeing Accelerated Revenue Growth from Current and New Opportunities

Miami, FL, June 27, 2024 (GLOBE NEWSWIRE) -- Blue Star Foods Corp., (“Blue Star,” the “Company,” “we,” “our” or “us”) (NASDAQ: BSFC), an integrated Environmental, Social, and Governance (ESG) sustainable seafood company with a focus on Recirculatory Aquaculture Systems (RAS), is pleased to announce that it is providing a 2024 forecast of at least 65% revenue growth with an annual run-rate of greater than $20 million.

The Company has been successful in securing new business for growth opportunities for the future, such as an increased customer base at its Canadian facility for steelhead salmon.

“We are excited to showcase our commitment to company growth in 2024. Our actionable plan started to show in our financial and operating results, as reflected in our recently reported first quarter 2024 report with 19% revenue increase versus first quarter 2023. We believe this is the beginning as new customers segment are ramping the business and land-based farm operating within expectations. The pipeline for additional business is robust and we look forward to closing on several new opportunities currently in the pipeline to support our growth trend in 2024-2025, our outlook remains decidedly bullish. said John Keeler, Chairman and CEO of Blue Star Foods.

About Blue Star Foods Corp. (NASDAQ: BSFC)

Blue Star Foods Corp. an integrated Environmental, Social, and Governance (ESG) sustainable seafood company with a focus on Recirculatory Aquaculture Systems (RAS) that processes, packages and sells high-value seafood products. The Company believes it utilizes best-in-class technology, in both resource sustainability management and traceability, and ecological packaging. The Company also owns and operates the oldest continuously operating Recirculating Aquaculture System (RAS) full grow-out salmon farm in North America. The company is based in Miami, Florida, and its corporate website is: https://bluestarfoods.com

Forward-Looking Statements:

The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s product development and business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Risks concerning the Company’s business are described in detail in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and other periodic and current reports filed with the Securities and Exchange Commission. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contacts:
investors@bluestarfoods.com

FAQ

What is the revenue growth forecast for Blue Star Foods in 2024?

Blue Star Foods is forecasting at least 65% revenue growth for 2024.

What is the anticipated annual run-rate for Blue Star Foods in 2024?

The anticipated annual run-rate for Blue Star Foods in 2024 is greater than $20 million.

How did Blue Star Foods perform in Q1 2024?

Blue Star Foods reported a 19% revenue increase in Q1 2024 compared to Q1 2023.

What new business opportunities are contributing to Blue Star Foods' growth?

Blue Star Foods is seeing growth from an increased customer base at its Canadian facility for steelhead salmon and other new business opportunities.

What is Blue Star Foods' outlook for 2024-2025?

Blue Star Foods has a bullish outlook for 2024-2025, supported by a robust pipeline of new business opportunities.