Shares in Ocean Harvest Technology Group have dropped 11% due to delays in onboarding new customers in Europe. The animal feed-additive manufacturer has revised its full-year revenue guidance, now expecting total revenue in excess of 3.4 million euros ($3.7 million).
Challenges and Compensations
The company had anticipated the delays in onboarding new European customers to be offset by volume from a customer in another region in the second half of the year. However, this customer has opted for lower initial volumes, postponing full utilization for the future.
The delays in Europe can be attributed to the negative impact of higher feed ingredient prices on customers’ profitability.
CEO’s Optimistic Outlook
Despite these setbacks, Chief Executive Mark Williams remains positive about the company’s long-term growth strategy. Williams states, “We will continue to manage some of the short term onboarding delays and we look forward to delivering on our long term growth strategy for our new and existing shareholders.”
Financial Performance
Ocean Harvest Technology Group has experienced a widening pretax loss, increasing from EUR1.3 million to EUR2.2 million in the first half of the year. However, revenue saw a promising rise of 42% to EUR1.75 million.