MIAMI - Blue Star Foods Corp. (NASDAQ:BSFC), an ESG-focused sustainable seafood company, has released its unaudited financial results for the first quarter ending March 31, 2024. The company reported a 19% increase in revenue and a significant 44% reduction in net losses.
For the quarter, Blue Star Foods saw its revenue rise to $2.3 million, up from $1.9 million in the same period last year. This growth has been attributed to an increase in the volume of products sold. Concurrently, the company's net loss shrank to $1.1 million, down from $1.9 million year-over-year.
The company's operating loss also showed improvement, dropping 11% to $0.8 million, partially due to a mix of non-cash or one-time non-recurring operating expenses totaling $1.1 million. These included depreciation and amortization costs, loss on settlement of stock, accrued portion of convertible debt, and non-cash stock compensation.
Adjusted EBITDA loss for the quarter was reported at $0.6 million, a 35% improvement from the previous year's $0.9 million. The company attributes the positive financial trajectory to enhanced margins and operational efficiencies.
John Keeler, Chairman and CEO of Blue Star, remarked on the company's performance, highlighting the successful start to the production season at their Recirculatory Aquaculture Systems (RAS) platform in South Carolina. Keeler noted the demand for their soft shell crab products outstripping supply.
Additionally, Blue Star executed a Master Service Agreement with a fully integrated seafood provider and signed an agreement with Eagle Rising to supply meals for the U.S. Military, which is expected to roll out to military bases in the coming months.
Blue Star Foods, based in Miami, Florida, prides itself on its commitment to sustainable seafood processing and packaging, boasting ownership and operation of North America's oldest continuously operating RAS full grow-out salmon farm.
InvestingPro Insights
Blue Star Foods Corp. (NASDAQ:BSFC) has shown a promising start to the year with a 19% increase in quarterly revenue, aligning with analyst expectations that forecast sales growth for the current year. Despite this, the company operates under a significant debt burden that raises concerns about its ability to manage interest payments, as highlighted by two InvestingPro Tips. With a market capitalization of $3.61 million, the company's valuation reflects a challenging financial position, underscored by a negative price-to-earnings (P/E) ratio of -0.2 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -1.08.
Investors should note that while Blue Star Foods has experienced a significant return over the last week with a 40.89% price total return, the stock has been subject to high price volatility, which is a critical consideration for potential and existing shareholders. Furthermore, the company's gross profit margin for the last twelve months as of Q1 2024 stands at a mere 0.69%, reflecting the challenges in maintaining profitability.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics, including 17 more InvestingPro Tips that can provide a more comprehensive understanding of Blue Star Foods' financial health and future prospects. To access these insights, visit https://www.investing.com/pro/BSFC, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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