Blue Star Foods Reports 14% Revenue Growth to $4.0 Million, Highlighted by 27% Increase in Gross Profit for the First Half 2024
Rhea-AI Summary
Blue Star Foods Corp. (NASDAQ: BSFC) reported 14% revenue growth to $4.0 million for the first half of 2024, with a 27% increase in gross profit. Key highlights include:
- Q2 2024: Revenue up 7% to $1.8 million, gross profit up 264% to $0.3 million
- Gross margin increased 1,170 basis points to 16.6%
- Operating loss decreased 36% to $0.7 million
- Total assets of $8.1 million
The company signed an agreement to provide meals for the U.S. Military and renewed its land-based aquaculture license through 2033. Blue Star also launched plans to improve soft-shell crab operations using AI and UV technology. CEO John Keeler forecasts at least 65% revenue growth in 2024, with an annual run-rate exceeding $20 million.
Positive
- Revenue increased 14% to $2.3 million for H1 2024
- Gross profit increased 27% to $0.5 million for H1 2024
- Gross margin improved by 1,170 basis points to 16.6% in Q2 2024
- Operating loss decreased 24% to $1.5 million for H1 2024
- Signed agreement to provide meals for U.S. Military
- Renewed land-based aquaculture license through 2033
- Forecasting 65% revenue growth in 2024 with annual run-rate exceeding $20 million
- Regained Nasdaq listing compliance
Negative
- Operating loss of $0.7 million in Q2 2024, despite decrease from previous year
Insights
Blue Star Foods' Q2 2024 results show promising signs of growth and operational efficiency. The 7% revenue increase to
The 36% reduction in operating loss to
Blue Star's strategic moves in the military food supply sector and technological advancements in soft-shell crab operations demonstrate a focus on diversification and innovation. The agreement to provide meals for the U.S. Military opens a potentially lucrative and stable revenue stream. This could significantly impact future earnings, especially as they plan to expand to multiple military bases.
The introduction of AI and UV technology in crab molting identification is a forward-thinking approach that could set Blue Star apart in the seafood industry. If successful, this could lead to increased efficiency, reduced costs and potentially higher margins in their soft-shell crab segment. Investors should watch for updates on the implementation and results of these initiatives, as they could be key drivers of future growth and market differentiation.
Increase in Revenues Led to
Quarterly Gross Margins Increased 1,170 Basis Points to
Miami, FL, Aug. 15, 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 and six months ended June 30, 2024.
Key Financial Highlights for the Three Months Ended June 30, 2024
- Revenue increased
7% to$1.8 million - Gross profit increased
264% to$0.3 million - Gross margin increased 1,170 basis points to
16.6% - Operating loss decreased
36% to$0.7 million - Inventory and RAS biomass of
$2.6 million - Total assets of
$8.1 million
Key Financial Highlights for the Six Months Ended June 30, 2024
- Revenue increased
14% to$2.3 million - Gross profit increased
27% to$0.5 million - Gross margin increased 120 basis points to
11.5% - Operating loss decreased
24% to$1.5 million
Business Highlights for the Three Months Ended June 30, 2024
- Signed Agreement with to provide high-quality, nutritious meals for U.S. Military
- Land-based aquaculture license renewal thru 2033 covering white sturgeon, coho salmon, chinook salmon and rainbow trout
Business Highlights Subsequent to the Three Months Ended June 30, 2024
- Initiated roll-out and expected to expand to numerous military bases over the next few months
- 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
Management Commentary
John Keeler, Chairman and CEO of Blue Star, commented, “Our first half 2024 results demonstrate the increase in business opportunities and revenue traction we are witnessing. The increased gross profit and gross margins are meaningful and drive incremental dollars to our operating line, which has been improving with each quarter. Our pipeline of existing and additional business remains strong, as our 2024 forecast of at least
Keeler, continued, “We are proud of our recent regaining Nasdaq listing compliance and believe our continued listing on a national exchange will better enable us to seek strategic opportunities such as strategic partnerships and acquisitions to complement our growth. We look forward to the remainder of 2024 as we embark on increasing our shareholder relations and outreach programs later in the fall.”
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, 2023, 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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