September 4, 2023

 

Barramundi Group narrowed net loss in first half of 2023

 

Barramundi Group, the sole fish farm operator in Singapore's southern waters, announced a narrowing of its net loss for the first half-year ending on June 30, reducing it to US$5.2 million from a loss of US$12.1 million during the same period last year, The Straits Times reported.

 

The group attributed this improvement to the implementation of proactive cost management strategies and operational adjustments.

 

These measures included the streamlining of headcount and processes in both Singapore and Brunei, reductions in administrative expenses, and adjustments to executive salaries.

 

While the revenue declined by 1.6%, falling to US$16.6 million from US$16.9 million, it was partially offset by higher retail prices and increased contributions from Fassler Gourmet, the group's subsidiary involved in product processing.

 

The company faced sales limitations in the Singapore market due to the scale drop disease virus outbreak affecting its barramundi, resulting in a 41.8% decrease in Singapore revenue, from US$3.6 million to US$2.1 million.

 

In response to these challenges, Barramundi Group ceased its sea farm operations in Singapore, opting to optimise its operational efficiency by harvesting the remaining biomass and repurposing infrastructure in Brunei.

 

The Singapore site will now focus on the production of superior barramundi fry and fingerling as part of the company's genetics and breeding program. Additionally, it will concentrate on aqua-tech capabilities such as vaccine and therapeutics development, veterinary and animal health, and broodstock research and development.

 

To strengthen its growth strategy, the company has shifted its focus to Brunei, leveraging its extensive sea and land leases exceeding 8,000 hectares, an operational recirculating aquaculture system nursery, and a diagnostic lab for fish with its UVAXX brand of autogenous vaccines.

 

Barramundi Group has streamlined its Australia business by placing it under voluntary administration. Two subsidiaries, MPA Fish Farms and MPA Marketing, were subsequently acquired by the Australia-based salmon farm operator Tassal Group on July 31. These results were not separated in the group's first-half figures.

 

-      The Straits Times