The biotechnology company Aker BioMarine is scaling up its industrial production of the high-value krill oil Superba™ as a dietary supplement. Start-up phase challenges in transitioning from small-scale manufacturing to industrial production have been solved.
“Aker BioMarine is back on track, and our innovative company has high activity levels. The dietary supplement Superba™ is now produced for its scheduled launch in the United States, Norway and other markets in the fourth quarter of 2008,” says Aker BioMarine President and CEO Helge Midttun.
Aker BioMarine had operating revenues of NOK 149 million for the first six months of 2008; EBITDA for the period was minus NOK 13 million. In the corresponding six-month reporting period of 2007, operating revenues were NOK 287 million and EBITDA was NOK 20 million. The revenue decline is attributable to the company’s discontinuing surimi production in Faeroe Islands fisheries. As planned, a gradual increase in fixed costs of the krill business has cut into profit. Pre-tax profit for the first six months of 2008 amounted to minus NOK 95 million, compared with minus NOK 58 million in the corresponding 2007 reporting period. The diminished profit performance is attributable to the gradual increase in fixed costs associated with the company’s krill business.
“Aker BioMarine has strengthened its position throughout the value chain — from sustainable harvesting through sales to consumers. Our targeted goals entail increased fixed costs now, revenues will be generated later on,” says Mr. Midttun.
Aker BioMarine had second-quarter 2008 operating revenues of NOK 132 million; EBITDA was NOK 14 million. In the second quarter of 2007, operating revenues were NOK 150 million and EBITDA was NOK 13 million.
In the second quarter of 2008, Aker BioMarine arrived at a solution that ensures stable production of Superba™ krill oil. In July krill oil was produced at an outsourced production facility. Aker BioMarine’s plan for krill oil to become a major revenue source from 2010-2011 and thereafter remains unchanged.
In Argentina, harvests and surimi production were excellent in the second quarter. The surimi trawler Centurion del Atlantico completed a good harvest season with high market prices for surimi. Demand for Aker BioMarine’s Qrill™ krill meal continues to grow; contracts have been signed with existing and new customers in the aquaculture industry. Sale of the newly developed Qrill™ oil has begun. Both pre-clinical and clinical development programs for Superba™ are progressing.
“Keen international interest in Superba™ is building a solid platform for launching the product in growth markets,” says Midttun.
