When Will Nordic Aqua Partners A/S (OB:NOAP) Turn A Profit?

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. The company’s loss has recently broadened since it announced a €8.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of €20m, moving it further away from breakeven. The most pressing concern for investors is Nordic Aqua Partners' path to profitability – when will it 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

Consensus from 2 of the Norwegian Food analysts is that Nordic Aqua Partners is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of €4.0m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 64%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Nordic Aqua Partners given that this is a high-level summary, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Nordic Aqua Partners is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Nordic Aqua Partners' case is 54%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Nordic Aqua Partners to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nordic Aqua Partners' company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

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.