Business Update


Clean Seas Seafood Limited ("Clean Seas" or "the Company") (ASX: CSS, OSE: CSS),
the global leader in full cycle breeding, production and sale of Yellowtail
Kingfish, is pleased to provide the following business update.


Highlights:
o	Full Year FY24 Sales Volume of 3,135t and Sales Revenue of A$68.7M a result of
strong demand and pricing for fresh product, offset by the requirement to
discount frozen sales 
o	Resilient pricing throughout FY24 at A$21.91/kg, with fresh pricing increasing
from A$22.80/kg in FY23 to A$22.93 in FY24
o	Frozen inventory reduced to circa 261t as at 30 June 2024 as the Company
cleared excess stock and right sized the business
o	Implementation of Operational Review completed and transition to efficient
single farm site finalised in May 2024
o	New automated feed barge completed and in transit to Port Lincoln will drive
cost savings, improve feed conversion and reduce waste
o	Feed prices declined from March 2024 peak of A$3.80/kg, with current orders
being placed at A$3.63/kg - A$3.72/kg
o	Sales guidance for FY25 in the range of 2,600 - 2,800t, with pricing expected
to benefit from a greater mix of domestic and fresh product sales coupled with
reduced frozen discounting
o	New efficient farming model and automation of feeding expected to deliver
positive Operating EBITDA in FY25

In FY24, total sales volume of 3,135 tonnes was up by 3% versus the prior year,
driven by consistent demand for fresh Kingfish and sales of discounted frozen
inventory. Revenue was A$68.7 million in FY24, marking a 1% decrease from FY23
as a result of reduced frozen pricing. 

Average sales pricing remained robust at A$21.91/kg, compared to A$22.73/kg in
FY23, with fresh pricing increasing from A$22.80/kg in FY23 to A$22.93/kg in
FY24. Clean Seas continues to experience sustained demand and strong pricing for
fresh volumes in both local and international markets, with the price of frozen
product in export markets driven by discounting in order to reduce frozen
inventory levels.

Operational Review

In FY24 Clean Seas undertook an in-depth Operational Review into the structure
of the business in order to drive efficiencies and improvements to offset input
cost pressures. Clean Seas reduced monthly frozen production from a peak of 110
tonnes in August 2023 to circa 20 tonnes per month from December 2023 to June
2024 and undertook a concerted campaign to clear surplus frozen inventory. These
actions have delivered a reduction in frozen inventory from a peak of 547 tonnes
in October 2023 to circa 261 tonnes at the end of June 2024. 

One of the key strategic outcomes of this Operational Review was the
consolidation of farming operations into Port Lincoln, an activity that was
completed in May 2024. This initiative has enabled the Company to realise cost
savings, including a reduction in feed expenses. The new farming footprint
leverages 3,696 tonnes of available biomass capacity across three leases in the
greater Port Lincoln area and all within 25km of the Company's base inside the
Port Lincoln Marina. In order to improve efficiencies, these three leases have
been set up as specialised nursery, growout and harvest sites, allowing specific
infrastructure to be deployed at each site.

To support this farming model, Clean Seas has invested in a new automated feed
barge, named the "Eyre Spirit", which has been fully constructed and is now in
transit to Port Lincoln ahead of deployment to the Company's growout lease. The
Company's existing barge, the "Kingfish 5", will be deployed on the nursery
lease. Once fully commissioned ahead of the upcoming summer growing season,
circa 90% of Clean Seas Kingfish will be able to be fed remotely from the
Company's office in Port Lincoln, driving cost savings, improving feed
conversion ratios and efficiency and reducing waste.

Clean Seas has retained its leases at Arno Bay (2,850t) and Fitzgerald Bay
(4,250t) but is not planning on farming these sites in the near future.

In conjunction with the Operational Review, the Company successfully completed a
Placement of A$9.5M and renewed its A$32.2M debt facility to support working
capital and infrastructure investment. 

Feed Prices

Clean Seas has observed feed prices easing from record highs of A$3.80/kg in
March 2024, with current feed orders placed at A3.63/kg to A$3.72/kg. Over the
last several years feed prices have risen faster than the FY18 CPI-adjusted feed
price of A$2.90/kg. The unusually high spike in feed prices in FY23 and FY24
reflects the volatile market for fish meal and oil, however this volatility
appears to have peaked, supporting the Company's current expectation for pricing
to decline in FY25.

Outlook

Looking ahead, Clean Seas is targeting sales volumes in the 2,600 - 2,800 tonne
range for FY25. In setting this range, the Company has assessed overall market
conditions, the expected performance of currently stocked year classes of
Kingfish, and the Company's stated goal of aligning sales and production at
circa 3,000 tonnes so as to achieve the expected significant savings in working
capital and operating costs. 

The target sales volume for FY25 is influenced by the following factors:

o	Operational challenges associated with the transition and consolidation of
farming activities onto a single site resulted in missed feed days and health
treatments leading to lower than expected fish growth rates and higher
mortalities in FY24. 
o	Below average water temperatures in Q4 FY24 impacting late-season growth rates
for the Company's Kingfish.   
o	Greater than expected sales of discounted frozen stock in FY24. The Company
expects to transition back to full price frozen sales in Q2 FY25, and with that
a reduction in frozen sales volume in FY25 versus FY24, with a corresponding
increase in frozen sales prices.
o	Constrained harvest forecast in FY25 in order to maintain the biomass required
for future years. Clean Seas Kingfish take 18-24 months to grow to harvest size,
and as such the year classes currently at sea on the Company's farms support the
harvest for the entire FY25 and for most of FY26. To ensure harvest targets for
FY25 and FY26 are met, the Company will seek to cap the FY25 harvest in the
2,600 - 2,800t range.  

The target sales volume is driven by available supply of the Company's Kingfish,
and as a result Clean Seas is expecting pricing to grow modestly in FY25 with
continued demand at or above the planned harvest of 2,600 - 2,800 tonnes, and
through the transition to full price frozen sales from Q2 FY25 onwards.
Additionally, the Company expects reductions in feed prices throughout FY25, and
with the efficiencies and cost savings derived from the Operational Review, and
improved fish performance resulting from the consolidated farming footprint,
Clean Seas expects to return to positive Operating EBITDA in FY25.       




Clean Seas Seafood CEO Rob Gratton said "FY24 has been a year of significant
operational change for Clean Seas, and having acted decisively to restructure
our operations, it is encouraging to see the positive benefits emerging, with
further improvements being relentlessly pursued. The consolidation of our
farming footprint will give rise to efficiencies and a lower risk profile in a
much shorter timeframe than would have otherwise been the case, providing
mitigation for the operational challenges experienced in FY24. Our expected
return to positive Operating EBITDA in FY25 demonstrates that we are on the path
to financial stability. "

The Board notes that the inherent operational risks in aquaculture may impact
future results. 

Authorised for release by the Board of Clean Seas Seafood Limited.

About Clean Seas Seafood

Clean Seas Seafood is a fully integrated Australian Aquaculture business listed
on the Australian Securities Exchange (ASX) and with a secondary listing on
Euronext Growth Oslo (OSE).

Clean Seas is the global leader in full cycle breeding, farming, processing and
marketing of its Hiramasa or Yellowtail Kingfish (Seriola lalandi) and is
renowned amongst leading chefs and restaurants around the world for its
exceptional quality.

Clean Seas is recognised for innovation in its sustainable Yellowtail Kingfish
farming and has become the largest producer of aquaculture Yellowtail Kingfish
outside Japan.

For more information, visit www.cleanseas.com.au 

All volumes are in Whole Weight Equivalents (WWE) unless otherwise specified. 

For further information on Clean Seas Seafood, please contact:
Rob Gratton	Andrew Angus
CEO	Investor Relations
rob.gratton@cleanseas.com.au	andrewangus@overlandadvisers.com.au
+61 434 148 979	+61 402 823 757











Disclaimer
The announcement contains 'forward-looking statements'. They are subject to
change without notice and certain risks, uncertainties and assumptions which
are, in many instances, beyond CSS' control. They have been based upon
management's expectations and beliefs concerning future developments and their
potential effect on CSS. Should one or more of the risks or uncertainties
materialise, or should underlying assumptions prove incorrect, the
forward-looking events discussed in this announcement may not occur. Investors
are cautioned that forward-looking statements are not guarantees of future
performance and accordingly investors are cautioned not to put undue reliance on
forward-looking statements due to the inherent uncertainty therein. CSS is under
no obligation to update any forward-looking statements contained within this
announcement, whether as a result of new information, future events or
otherwise, subsequent to the date of this announcement.