Ocean Grown serves up higher revenue but wider costs amid expansion
Health & Biotech
Health & Biotech
Ocean Grown sold 24.3 tonnes of its abalone in just the past six months.
That’s 161 per cent more than the same period last year, leading to a 222 per cent in sales revenue to $1.34 million. Total revenue was $1.5 million.
Losses for the half widened to $1.6 million compared to a loss of $1.2 million in the same period last year.
Ocean Grown (ASX:OGA), which recently joined the local bourse, reported increases across the board in harvests and biomass.
However the shares were trading at 17c on Tuesday morning — down from its IPO issue price of 25c.
Ocean Grown told investors it was transitioning from a construction and development phase to full operations and production at its Flinders Bay ranch.
Just over 7000 of its abitats – abalone habitats – have been deployed so far, well on track for a target of 10,000 by the first quarter of FY 2019.
To date the company sells the delicacy live, quick frozen and vacuum sealed in a pouch – and says it’s working with its Asian customers to develop more.
Currently production is solely centred at its artificial reefs at Flinders Bay. But trials in Esperance — in conjunction with the Southern Ports Authority — are ongoing, with further potential at two sites in South Australia and one in Victoria.