BioMar's third quarter reveals a decline in sales volumes year-on-year, while the company is still heading for a strong full-year result. Although revenue has decreased due to stable volumes and lower raw material prices, earnings have increased due to an emphasis on commercial and operational efficiency and a shift towards long-term customer relationships.
BioMar reports solid third quarter results for 2024, still indicating that the company will reach the expected earnings for the year. However, full-year revenue expectations are slightly lowered due to decreasing raw material prices combined with lower volumes because of biological conditions in Norway, energy crisis in Ecuador and a focus on receivable risks in the Mediterranean area.
"In general, we are performing well across divisions despite challenges related to biological conditions in Norway and the Ecuadorian energy crisis, which has impacted our production of shrimp feed. Our focus on functional feed solutions combined with shared value creation with our customers is providing tailwind. Given our strong momentum and solid outlook, we will slightly narrow the full-year EBITDA expectations for 2024 to the level of DKK 1,410-1,460 million" explains CEO Carlos Diaz.
The news on the quarterly results is released together with an announcement from Schouw & Co., the owners of BioMar, that they have initiated an evaluation of a potential listing:
“Schouw & Co. has initiated an evaluation of a possible separate listing of BioMar. Since BioMar became part of the Schouw & Co. Group in 2005, we have grown to become a leading global producer of sustainable aquaculture feeds and have almost six-doubled our revenue. A potential separate listing of BioMar could provide the right platform for BioMar to continue our growth trajectory” says BioMar CEO Carlos Diaz and continues:
“If Schouw & Co. eventually decides to pursue a separate listing of BioMar, they intend to remain the majority shareholder of BioMar and will continue to support our development through both organic and acquisitive growth”.
Results (22)
he year 2024 underlined the long-term positive development of BioMar. Profitability was remarkably strong in a year of declining volumes and revenue. Concluding a successful year, BioMar achieved a strong Q4, resulting in the best results ever for the group.
Concluding a successful year, BioMar achieved a strong Q4, resulting in the best results ever for the group.
The positive development is mainly driven by stronger development in the Salmon and LATAM divisions, compensating for a weaker result in the EMEA division.
By adding all the feed companies in the Group managed by BioMar, including joint ventures, BioMar ends with a record first quarter of EBITDA of more than DKK 310 million.
Following the invasion of Ukraine, BioMar Group shuts down all trade activities with Russia. The decision includes sales of finished products as well as the sourcing of raw materials.
Midyear, BioMar discloses strong momentum aiming for another all-time high full year result. While volumes and revenue for the second quarter of the year are lower than last year, EBITDA is up by 36%.
The significant increase in revenue in Q2 was driven by higher sales volumes, raw material prices, and to some extend currency rate development.
BioMar concludes the year with solid growth across markets with a significant increase in volumes and revenue, reaching an all-time high level.
The company is now raising earnings guidance for the full year to the range of DKK 960-1,000 million.
The significant increase in revenue in Q1 was driven by higher sales volumes, raw material prices, and to some extend currency rate development.
BioMar concludes the year with solid growth across markets with a significant increase in volumes and revenue, reaching an all-time high level.
BioMar is coming out of the third quarter with a 5% increase in volumes year-on-year. The increase in volumes, combined with a strong product strategy,