I finally managed to complete my own analysis of Fifax. Some of the information is taken from Inderes’ extensive report, but it should be based on data disclosed by Fifax. A large part of the materials remains unread, however, so errors are possible.
Annual production should be approximately 3,200 tons, of which 80-85% is obtained as gutted weight. The midpoint was used in the calculations. The table below shows the producer prices for salmon reported by Luke (Natural Resources Institute Finland).
Based on the Q2 income statement, costs on an annual level could be:
Personnel expenses -1.85
Depreciation -1.65
Other expenses -2.4
These costs are close to the target level.
Materials and services costs are currently 0, which presumably means they are practically capitalized into inventories. In the first half of the year, the fish stock grew by 278 tons and inventories increased by approx. €900k. This could mean a cost of approx. €3.92/kg (gutted). Based on the values at the end of the half-year, the result would have been €4.68/kg (gutted). A bit of a simplified method, but it’s hard to estimate it otherwise. The target level in the report was €2.3/kg (gutted).
Since the producer price and materials and services costs are somewhat vague, potential operating profit is tabulated below as revenues and costs change. Furthermore, we cannot know at what price the starting production will be sold, and the table allows for easily accounting for unexpected cost increases.
As for the valuation, if outlining an enterprise value of 25 million euros, the same table gives the following result:
Hopefully, there aren’t any major errors.
Edit: Added price data for farmed rainbow trout from Luke