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Clean Seas Seafood (ASX:CSS) - CEO, Robert Gratton - The Market Herald
CEO, Robert Gratton
Source: Clean Seas
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  • Sustainable aquaculture company Clean Seas Seafood (CSS) has updated the market regarding its business to the end of FY21's first half
  • Throughout the period, the company saw increases across sales and fixed a production issue
  • In 1H FY21, Clean Seas saw its Australian sales increase from 294 tonnes in Q1 to 456 tonnes in Q2
  • Unfortunately, due to COVID-19 restrictions being reinstated in Europe, sales declined from 267 tonnes in Q1 to 174 tonnes in Q2
  • Despite COVID, Clean Seas remains optimistic about continued recovery throughout 2021
  • Further, Clean Seas experienced an increase in fish mortalities within its marine leases in Boston Bay, South Australia
  • A range of contributing factors have been identified and steps have been taken to reduce the risk of further deaths such as removing fish from the affected area
  • Clean Seas has ended the day 7.19 per cent in the green with shares trading at 82 cents

Clean Seas Seafood (CSS) has updated the market regarding its business to the end of FY21's first half.

The sustainable aquaculture company saw increases across sales volumes and has fixed a production issue.

Sales volumes

Throughout the end of FY20 and the beginning of FY21, Clean Seas saw its Australian sales increase from 196 tonnes in Q4 FY20, to 294 tonnes in Q1 FY21, then 456 tonnes in Q2 FY21.

The Q2 FY21 sales represent a 3 per cent increase on the Q2 FY20 sales.

European sales also had an increase from 94 tonnes in Q4 FY20 to 267 tonnes in Q1 FY21 which is inline with Q1 FY21.

Unfortunately, due to COID-19 restrictions being reinstated in Europe, sales declined slightly to 174 tonnes in Q2 FY21.

Over in North America, 157 tonnes of product were shipped to Hofseth North America, and Clean Seas kingfish are now being sold in 80 stores throughout the country.

Overall, Clean Seas achieved 1413 tonnes of sales in 1H FY21, compared to 1406 tonnes in 1H FY20 and 1016 tonnes in H2 FY20.

Clean Seas is remaining optimistic for continued recovery throughout 2021.

Production

Unfortunately, Clean Seas has experienced an increase in fish mortalities within its marine leases in Boston Bay, South Australia. However, its other farming locations in the Spencer Gulf are unaffected.

A range of contributing factors have been identified and steps have been taken to reduce the risk of further deaths such as removing fish from the affected area.

Due to COVID, Clean Seas has a surplus of fish and, as a result, does not expect any impact to its sales volumes.

Banking facility

Clean Seas has renewed its banking facility with the Commonwealth Bank (CBA), with the existing facility totalling $32 million.

This gives the company adequate funds for working capital and it will fund planned capital investments that will deliver increased production.

"Clean Seas has exited the challenging 2020 year in a good position, with sales volumes in Q2 FY21 slightly above pre-COVID levels, and a strong balance sheet with the recent renewal of the company's banking facilities," CEO Rob Gratton said.

"Sales in existing channels have rebounded strongly as restrictions east, and importantly, the strategic relationship with Hofseth is gaining traction with sales of Kingfish into North American markets diversifying, strengthening and growing the Clean Seas business," he added.

Clean Seas has ended the day 7.19 per cent in the green, with shares trading at 82 cents in an $86.6 million market cap.

CSS by the numbers
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