Blue Star Foods Reports 19% Growth to $2.3 Million Revenue for First Quarter Ended March 31, 2024
Blue Star Foods reported a 19% revenue growth to $2.3 million for Q1 2024, compared to $1.9 million in Q1 2023. Net loss dropped by 44% to $1.1 million, and adjusted EBITDA loss decreased by 35% to $0.6 million. Business highlights include a new Master Service Agreement with a fully integrated seafood provider and the start of soft-shell operations in South Carolina. Post-Q1, Blue Star signed a supply agreement with Eagle Rising to provide meals for the U.S. Military. CEO John Keeler cited improved margins and efficiencies, leading to reduced losses and high demand for their products.
- Revenue increased 19% to $2.3 million for Q1 2024.
- Net loss decreased by 44% to $1.1 million for Q1 2024.
- Adjusted EBITDA loss decreased by 35% to $0.6 million for Q1 2024.
- Executed a Master Service Agreement with a fully integrated seafood provider.
- Started production of soft-shell operations in South Carolina for 2024.
- Signed an agreement with Eagle Rising to provide meals for the U.S. Military post-Q1.
- Operating loss for Q1 2024 decreased only by 11% to $0.8 million.
- Non-cash or one-time non-recurring operating expenses of $1.1 million.
- Loss on the settlement of stock amounted to $0.65 million.
- Net loss per share for Q1 2024 was ($0.04).
Insights
The revenue growth of
Adjusted EBITDA loss decreasing by
However, it’s important to remain cautious. The net loss per share of
The signing of the Master Service Agreement (MSA) and the agreement with Eagle Rising are strategic moves that position Blue Star Foods for future growth. The MSA allows the company to tap into a fully integrated seafood provider network, which could potentially lead to new business opportunities and higher revenue streams. The Eagle Rising agreement is particularly promising as it connects Blue Star Foods with the U.S. military, a stable and sizeable market.
Another noteworthy point is the seasonal start to production at their South Carolina RAS platform. This move into soft-shell operations can cater to a niche market with growing demand. Recirculatory Aquaculture Systems (RAS) are known for their sustainability and efficiency, which aligns with the company’s ESG focus. This could appeal to environmentally conscious consumers and investors alike.
From a market perspective, these developments indicate a forward-thinking strategy aimed at diversifying revenue streams and tapping into new markets. However, execution risks remain, especially in scaling these operations and meeting the increased demand.
Blue Star Foods’ focus on Recirculatory Aquaculture Systems (RAS) and its ESG commitments add a unique dimension to its business model. RAS is a sustainable method of aquaculture that recycles water and reduces the environmental footprint, which aligns with the growing global emphasis on sustainable practices. This positions Blue Star favorably in an industry often criticized for its environmental impact.
The company’s strategy to enhance its ESG profile could attract ethical investors and customers alike. This is particularly important as sustainability becomes a more significant criterion for investment decisions. Furthermore, the company’s proprietary Bio-Plan demonstrates a commitment to innovation in sustainable seafood production, which could set them apart from competitors.
However, while these ESG initiatives are commendable, they also come with higher upfront costs. Investors should consider the balance between these initial expenses and the long-term benefits of a sustainable approach.
Increase in Revenues Leads to
Miami, FL, May 20, 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”), announced unaudited financial and operational results for the three months ended March 31, 2024.
Key Financial Highlights for the Three Months Ended March 31, 2024
- Revenue increased
19% to$2.3 million - Net loss decreased
44% to$1.1 million - Adjusted EBITDA loss decreased
35% to$0.6 million - Inventory and RAS biomass of
$2.3 million
Business Highlights for the Three Months Ended March 31, 2024
- Executed Transformational Master Service Agreement (MSA) with a the fully integrated seafood provider.
- Started Production of Soft-Shell Operations in South Carolina for the 2024 Season Under Existing License from the South Carolina Department of Natural Resources
Business Highlights Subsequent to the Three Months Ended March 31, 2024
- Signed Agreement with Eagle Rising to Provide High-Quality, Nutritious Meals for U.S. Military
Management Commentary
John Keeler, Chairman and CEO of Blue Star, commented, “We returned to revenue growth and greatly improved our margins and efficiencies which have led to a significant reduction in our losses. We had a successful seasonal start to production at our RAS platform in South Carolina, which encompasses over 100 tanks and utilizes our proprietary Bio-Plan. Currently, we have more demand that what are able to supply with full tanks of crab peelers against the rapid growth in soft shell crab demand.”
Keeler, continued, “Our MSA with the fully integrated seafood provider, previously announced on February 21, which calls for Blue Star to assist with sourcing, operations, and distribution of its products, recovering existing business and securing additional new business for growth opportunities, such as the recently announced execution of a supply agreement to provide manufacturing of Eagle Rising specified innovative food solutions for the U.S. Military, which will roll out to initially 8 military bases over the next few months..”
Financial Results for the Three Months Ended March 31, 2024
- Revenue for the three months ended March 31, 2024, increased by
$0.4 million , or19% , to$2.3 million compared to$1.9 million for the three months ended March 31, 2023. The increase in revenue was primarily due to an increase in poundage sold during the three months ended March 31, 2024. - Operating loss for the three months ended March 31, 2024, decreased by
$0.1 million , or11% , to$0.8 million , compared to$0.9 million for the three months ended March 31, 2023. Operating loss for the three months ended March 31, 2024 included mostly non-cash or one-time non-recurring operating expenses of$1.1 million , comprised of non-cash items of$3 k in depreciation and amortization,$0.65 million of loss on settlement of stock,$0.27 million accrued portion of convertible debt and$0.05 million in non-cash stock compensation. - Net loss for the three months March 31, 2024, decreased by
$0.9 million , or44% , to$1.1 million , compared to$1.9 million for the three months ended March 31, 2023. The decrease in net loss is primarily attributable to increases in other operating expenses and loss on settlement of debt. The resulting net loss per share of common stock loss for the three months ended March 31, 2024, was ($0.04) , compared to a net loss per share of common stock of ($1.16) for the three months ended March 31, 2023. - Adjusted EBITDA loss for the three months ended March 31, 2024, decreased by
$0.3 million , or35% to$0.6 million , compared to$0.9 million for the three months ended March 31, 2023.
About Blue Star Foods Corp. (NASDAQ: BSFC)
Blue Star Foods Corp. is an integrated ESG seafood company 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 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, 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 Contact:
Investors@bluestarfoods.com
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