Bullish indicating open at $55-$60, IPO prices at $37
MIAMI, FL - Blue Star Foods Corp. (NASDAQ:BSFC), a sustainable seafood company specializing in Recirculatory Aquaculture Systems (RAS), has reported unaudited financial results for the first half of 2024, highlighting increased revenues and reduced operating losses. The company announced a 7% revenue increase to $1.8 million and a 264% rise in gross profit to $0.3 million for the three-month period ending June 30, 2024. Gross margins also grew significantly, up 1,170 basis points to 16.6%.
For the six-month period, Blue Star Foods saw a 14% revenue increase to $2.3 million and a 27% increase in gross profit to $0.5 million. The gross margin for this period increased by 120 basis points to 11.5%. Notably, the company's operating loss decreased by 24% to $1.5 million, marking a positive shift in its financial trajectory.
In operational developments, the company has renewed its land-based aquaculture license through 2033, which includes species such as white sturgeon and various types of salmon and trout. Blue Star Foods has also signed an agreement to supply nutritious meals to the U.S. Military, with plans to expand this initiative to numerous military bases in the coming months.
Adding to its innovative approach, the company is set to enhance its soft-shell crab operations by integrating AI with UV light technology for molting crab identification, aiming to set a new industry standard.
John Keeler, Chairman and CEO, expressed optimism about the company's growth and improved financials, citing a strong business pipeline and a forecast of at least 65% revenue growth for 2024, with an annual run-rate surpassing $20 million. Keeler also mentioned strategic initiatives, including partnerships and acquisitions, to complement the company's growth and plans to increase shareholder relations programs later in the year.
Blue Star Foods' positive financial results and operational advancements demonstrate the company's ongoing commitment to ESG principles and technological innovation within the seafood industry. This announcement is based on a press release statement.
In other recent news, Blue Star Foods Corp. has disclosed its unaudited financial results for the first quarter of 2024. The Miami-based sustainable seafood company reported a 19% increase in revenue, with earnings rising to $2.3 million from the previous year's $1.9 million. This growth is primarily attributed to an increase in the volume of products sold. Concurrently, Blue Star Foods also experienced a significant 44% reduction in net losses, which shrank to $1.1 million from $1.9 million year-over-year.
Moreover, the company's operating loss improved, dropping 11% to $0.8 million, partially due to non-cash or one-time non-recurring operating expenses. Adjusted EBITDA loss for the quarter was reported at $0.6 million, marking a 35% improvement from the previous year. These recent developments are attributed to enhanced margins and operational efficiencies.
In other company news, Blue Star Foods has entered a Master Service Agreement with a fully integrated seafood provider and signed a contract with Eagle Rising to supply meals for the U.S. Military. These agreements are expected to be implemented in military bases in the coming months.
InvestingPro Insights
Blue Star Foods Corp. (NASDAQ:BSFC) has shown a notable uptick in revenue and gross profits as per its unaudited financial results for the first half of 2024. While the company's strategic initiatives seem to be bearing fruit, a closer look at the real-time data from InvestingPro reveals a more nuanced picture of the company's financial health and market performance.
According to InvestingPro Data, Blue Star Foods has a market capitalization of $2.74 million, which suggests a relatively small scale in the market compared to industry peers. The company's P/E ratio stands at -0.11, indicating that it is not currently profitable on a per-share basis. This aligns with the company's reported operating loss, although it has been reduced. Furthermore, the gross profit margin for the last twelve months as of Q1 2024 is reported at a mere 0.69%, which is quite low and may raise concerns about the company's ability to maintain profitability.
InvestingPro Tips highlight several challenges and opportunities for Blue Star Foods. The company is expected to see net income growth this year and analysts anticipate sales growth in the current year, which may align with the CEO's optimistic revenue growth forecast. However, it is important to note that the company has been quickly burning through cash, which could pose a threat to its financial stability. Additionally, the stock has experienced high volatility with significant price drops over various periods, including a 57.09% decrease over the last month and an 81.12% decrease over the last six months. This volatility is a critical factor for investors to consider.
For those interested in a deeper dive into Blue Star Foods' financial outlook, InvestingPro offers additional tips, with a total of 19 tips available on the platform. These tips provide valuable insights that could help investors make more informed decisions regarding BSFC's stock.
Overall, while Blue Star Foods is making operational progress, potential investors should weigh the InvestingPro insights, which reveal concerns about the company's cash burn rate and stock volatility, against the company's optimistic projections and recent operational achievements.
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