BioMar raises profits forecast after increase in sales
Feed manufacturer BioMar has raised its guidance for full-year revenue and EBITDA after reporting improved results for the first half of 2019.
The Danish company said sales volume increased 4% compared to the same period last year, from 512,000 tonnes to 535,000 tonnes, driven by strong performance in salmon markets in Scotland and Chile, as well as within business units producing feed for other species across the world.
Revenue increased from DKK 4.4 billion (£542 million) in H1 2018 to DKK 4.65bn.
BioMar has raised guidance of full-year 2019 revenue from DKK 10.3bn to DKK 10.8bn, and EBITDA from DKK820-890m to DKK 870-930m.
In a press release, BioMar said innovative product offerings and close cooperation with customers in the design of advanced feed solutions had helped drive results.
‘Driver of welfare’
“Feed is moving away from being a commodity product towards being a significant driver of welfare in the farms as well as a part of the value proposition towards the end-consumers,” said BioMar chief executive Carlos Diaz.
In January BioMar reshuffled its salmon feed management after losing market share in Norway last year.
Paddy Campbell, managing director of the Scottish business unit, was promoted to vice-president of the salmon division, and global R&D director Håvard Jørgensen becomes managing director in Norway.
The company said that during H1 2019 it had implemented a new operating model in Norway and a new set-up towards customers, enabling higher efficiency and facilitating agile collaboration.
Regaining ground
New products had also been introduced, creating opportunities for combining high-performing feed solutions with advanced functional feed. However, lower sales volumes during 2018 continued to impact overall results.
“We experience that our initiatives have been well received and we feel strongly that we are regaining our good foothold in the market,” said Diaz.
“The new management team has brought very strong technical profiles to the forefront of our business, enabling the next generation of product innovation together with the customers and a reinforced closeness to the market.
“I am confident that we will continue to see improved results within a very short timeline.”
