Blue Star Foods Reiterates its 2024 Forecast of At Least 65% Revenue Growth with an Annual Run-Rate of Greater Than $20 Million

Rhea-AI Summary

Blue Star Foods Corp. (NASDAQ: BSFC) has reiterated its 2024 forecast of at least 65% revenue growth with an annual run-rate exceeding $20 million. The company's confidence is based on a strong pipeline of existing and new business, supported by several initiatives:

1. Roll-out of gourmet meals for the U.S. Military
2. Weekly harvests at their land-based steelhead salmon farm
3. Increasing inventory levels in anticipation of revenue acceleration
4. Plans to improve soft-shell crab operations using AI and UV technology

CEO John Keeler addressed investor concerns, stating that the company is unaware of any specific reason for the stock's underperformance since withdrawing their S-1 Registration Statement on August 16, 2024. Blue Star has also strengthened its balance sheet by paying off $645,668 in debts.

Positive

• Forecast of 65% revenue growth for 2024
• Projected annual run-rate exceeding $20 million
• Strong pipeline of existing and new business
• Initiated roll-out of gourmet meals for U.S. Military
• Weekly harvests at land-based steelhead salmon farm
• Increasing inventory levels for anticipated revenue acceleration
• Planned implementation of AI and UV technology in soft-shell crab operations
• Strengthened balance sheet by paying off $645,668 in debts

Negative

• Recent stock underperformance
• Withdrawal of S-1 Registration Statement on August 16, 2024

Insights

Financial Analyst

Blue Star Foods' reiteration of its 2024 forecast with 65% revenue growth and a $20 million annual run-rate is noteworthy, but lacks concrete financial data to support these projections. The company's initiatives, including U.S. Military contracts, weekly steelhead salmon harvests and inventory increases, suggest potential growth. However, the lack of specific figures or comparisons to previous periods makes it challenging to assess the feasibility of these targets. The debt reduction of $645,668 is positive for the balance sheet, but its impact on overall financial health remains unclear without full financial statements. The CEO's statement addressing stock underperformance raises questions about market perception and potential underlying issues not disclosed in this announcement.

Market Research Analyst

Blue Star's focus on ESG and sustainable seafood aligns with growing consumer trends, potentially positioning them well in the market. The company's diversification across military contracts, land-based salmon farming and soft-shell crab operations could provide multiple revenue streams. However, the lack of concrete market share data or competitive analysis makes it difficult to gauge their true market position. The planned AI and UV technology for crab molting identification is innovative, but its impact on operations and market advantage needs further clarification. The company's acknowledgment of stock underperformance suggests potential investor concerns that may require more transparent communication and detailed operational updates to address.

Tech Expert

Blue Star's plan to integrate AI and UV light technology in soft-shell crab operations is intriguing. This innovation could potentially streamline the molting crab identification process, improving efficiency and reducing labor costs. However, the announcement lacks technical details on implementation, expected efficiency gains, or how this technology compares to current industry standards. The success of this initiative will depend on factors such as the accuracy of the AI algorithms, the effectiveness of UV light in identifying molting crabs and the system's scalability. While promising, more information is needed to assess the true impact of this technology on Blue Star's operations and its potential to create a significant competitive advantage in the seafood industry.

Miami, FL, Sept. 06, 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), today announced that are no material changes in its business and that it reiterates its previously issued 2024 forecast of at least 65% revenue growth with an annual run-rate of greater than $20 million.

This forecast is based on a current pipeline of existing and additional business that remains strong, and is supported by the following:

• Initiated roll-out gourmet meals made in USA for U.S. Military.
• Currently harvesting weekly at the land-based steelhead salmon farm.
• Increasing inventory levels in anticipation of revenue acceleration.
• Launched plans to improve its soft-shell crab operations by introducing cutting-edge technology that combines Artificial Intelligence (AI) with Ultraviolet (UV) light technology to revolutionize the industry’s standard molting crab identification process.

John Keeler, Chairman and CEO of Blue Star Foods, commented, “For those investors that asked, “What is going on and what is happening?” We are confident in our business and know of no specific reason why our stock has underperformed, since we withdrew our S-1 Registration Statement on August 16, 2024 and subsequently strengthen our balance sheet by paying off $645,668 of debts.”

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, 2023, 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 Blue Star Foods' revenue growth forecast for 2024?

Blue Star Foods (NASDAQ: BSFC) has reiterated its forecast of at least 65% revenue growth for 2024, with an expected annual run-rate exceeding $20 million.

What initiatives is BSFC implementing to support its 2024 revenue forecast?

BSFC is supporting its 2024 forecast through several initiatives: rolling out gourmet meals for the U.S. Military, conducting weekly harvests at its land-based steelhead salmon farm, increasing inventory levels, and planning to improve soft-shell crab operations with AI and UV technology.

How has Blue Star Foods (BSFC) strengthened its balance sheet recently?

Blue Star Foods (BSFC) has strengthened its balance sheet by paying off $645,668 in debts, as stated in the press release.

What technological improvements is BSFC planning for its soft-shell crab operations?

BSFC is planning to introduce cutting-edge technology that combines Artificial Intelligence (AI) with Ultraviolet (UV) light technology to revolutionize the industry's standard molting crab identification process in its soft-shell crab operations.