Blue Star Foods Corp. Reports 41.3% Decline in Net Sales and Increased Losses for Fiscal Year 2024

Blue Star Foods Corp. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with net sales dropping 41.3% to $3.6 million, down from $6.1 million in 2023. The company experienced a gross loss of $1.3 million compared to a gross profit of $158,077 in the previous year, primarily due to higher market prices and increased inventory reserves. The gross loss margin also worsened, reaching 35.9% compared to a profit margin of 2.6% in 2023. The net loss for the year was $12.5 million, a substantial increase from the $4.5 million loss reported in 2023.

Operationally, Blue Star Foods has shifted its focus away from its subsidiary, John Keeler & Co., to concentrate on Coastal Pride Seafood and Taste of BC Aquafarms, Inc. (TOBC). The company plans to fully transition away from Keeler & Co. by the second quarter of 2025. In addition, Blue Star Foods entered into a Master Services Agreement with Afritex Ventures, Inc. in early 2024, which has since resulted in approximately $1.5 million in losses. The company also reported a significant increase in other operating expenses, which rose to $7.1 million from $2.5 million in 2023, largely due to legal and professional fees.

The company’s customer base remains concentrated, with five customers accounting for approximately 48% of revenue in 2024. This concentration poses a risk, as the loss of any major customer could adversely impact financial results. On the supply side, four major suppliers accounted for about 61% of total purchases, with the largest supplier in India representing 20% of total purchases. The company’s reliance on a limited number of suppliers and customers highlights potential vulnerabilities in its operational strategy.

Looking ahead, Blue Star Foods faces challenges related to liquidity, with a working capital deficit of $411,225 as of December 31, 2024, compared to a surplus of $899,215 in 2023. The company’s cash position improved to $326,854, but it remains dependent on raising capital to sustain operations and execute its business plan. Management has indicated that the company’s ability to continue as a going concern is contingent upon increasing revenues and securing additional financing. The company is currently evaluating various strategic options, including potential acquisitions and organic growth initiatives, to enhance its market position and financial stability.