When Will Nordic Aqua Partners A/S (OB:NOAP) Become Profitable?

Nordic Aqua Partners A/S (OB:NOAP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nordic Aqua Partners A/S, together with its subsidiary, primarily engages in the land-based Atlantic salmon farming in the People’s Republic of China. With the latest financial year loss of €8.2m and a trailing-twelve-month loss of €5.3m, the kr1.3b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Nordic Aqua Partners will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Nordic Aqua Partners

According to the 2 industry analysts covering Nordic Aqua Partners, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of €245k in 2026. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 83% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Nordic Aqua Partners' growth isn’t the focus of this broad overview, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 35% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Nordic Aqua Partners which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Nordic Aqua Partners, take a look at Nordic Aqua Partners' company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:

1. Valuation: What is Nordic Aqua Partners worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Nordic Aqua Partners is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Nordic Aqua Partners’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.