Barramundi Group announces progress with Brunei operations

In the business update for 1H 2024, James Kwan, CEO, Barramundi Group Ltd (“Barramundi Group” or the “Company”) (EURONEXT: BARRA) announced progress with the Brunei Economic Development Board (BEDB) in the BG2.0 land-based RAS. It is at the fundraising for the Mengsalut site master plan, sea-water intake design, and bioremediation strategy.

The group has secured SGD15 million financing for expansion of sea operations. The grow-out cages at the Pelong Rocks site have been operational since July 2024 with first stocking in one cage. The remaining cages have been assembled and ready for deployment in Q1 2025 (post monsoon season). In March 2025, five more cages will be stocked. It has improved process flows from nursery to sea, citing smaller stocking size allows less risk in logistical movement, and animal stress. In Q3 2024, the standing biomass stands at 82 tonnes a 113% increase from 38tonnes Y-O-Y. The broodstock centre and hatchery at Mengsalut is waiting for seawater intake design.

Earlier in February 2024, the group had announced that the new broodstock and hatchery facility will allow the Brunei operations to capitalise on the genetic nucleus from the Singapore broodstock – naturally bred and selected over 20 years – to spawn and culture fry and fingerling. Capacity of this facility will allow Brunei to be sufficient not only for the Phase 1 Pelong Rocks grow-out cages, with an annual capacity of 1,000 tonnes, but also for Phase 2 requirements of the planned 3,000 tonne land-based RAS facility.

Kwan said that the three additional stocking into Pelong Rocks in 2025 will lead the group into a steady state of 1,000 tonnes/year production. “Growth and health performance of the first stock has been very promising, with very low accumulated mortalities, lower FCRs and better than model growth. Whilst this is still early days, we believe this is the result of the better water conditions in Brunei as well as the relative isolation of Pelong Rocks.”

UVAXX Vaccine Technology
The joint research with Singapore’s A*STAR (Agency for Science Technology and Research) has concluded with promising epitope-based vaccine to tackle SDDV (Scale Drop Disease Virus) in barramundi. A*STAR and Uvaxx will jointly own the IP.

The second phase of project is to commercialise a registered vaccine, targeted for Q1 2025. The completion of safety field challenge trials, compilation of health and safety dossiers for vaccine is expected with registration in 36 – 48 months. “This is UVAXX’s first registered (non-autogeneous) vaccine. UVAXX has also been appointed by a major MNC pharmaceutical company as their sole partner to do lab diagnostic services to serve aquaculture farms in Southeast Asia.”

Apart from phase 2 of SDDV vaccine project to achieve commercialisation, UVAXX is also developing vaccines for 2 other pathogens of commercial interest.

Marketing
The group has built its marketing efforts with Ben Foods Brunei to increase the number of frozen SKUs in their freezer counters. It has commenced small-scale pilot exports. As biomass increases, these exports volumes will correspondingly increase, said Kwan. Popular Sushi chain, Kaizen, and Airport restaurant Anjung Saujana have launched Kuhlbarra labelled products in their menu.

With regards to Fassler Gourmet Pte Ltd, it has been a challenging 2023 and 1H 2024, where management navigated through high inflation and volatile raw material costs and erosion of some customers due to an increasingly competitive landscape. The focus is on R&D by the culinary team to increase new high margin retail products. Its Salmon Shepherd’s Pie and Salmon Burger Patty products have been taken up by Singapore’s largest supermarket retailer.
Fassler improved EBITDA margin from 3.9% to 4.5%.

In this update, the Barramundi Group announced that revenue in 1H 2024 dropped 22% as compared to adjusted figure for 1H 2023. Operating EBITDA was approximately the same. Net loss increased by 8% in 1H 2024 as compared to the adjusted figure in 1H 2023.

Barramundi Group started its first farm in Singapore in 2008. In 2012, it set up proprietary autogenous vaccination capabilities through UVAXX. In the February 2024 update, Kwan reiterated the group decision to cease grow-out operations in Singapore in June 2023, due to the heavy outbreaks of SDD in the southern waters of Singapore.

Listed in Euronext Growth Oslo since 2021, it is the only Asian aquaculture company and the first for a tropical species. It is also the first company in Singapore to get BAP certification. barramundi.com