BioMar boosts Q3 earnings by 41%
Feed supplier raises full-year profits guidance after strong quarter
Aquafeed producer BioMar today reported a 41% increase in revenue for the third quarter of 2022 compared to the same period last year, despite selling a slightly lower volume of feed.
Earnings also recovered significantly compared to Q3 2021, and the Danish company is now raising earnings guidance for the full year from DKK 910-960 million to DKK 960-1,000 million (£113-118 m).
BioMar said solid sales in the feed business combined with strong results in the newly acquired shrimp feeding systems supplier AQ1 pushed earnings up by 45% compared to Q3 2021.
Revenue was DKK 5.804 million (Q3 2021: DKK 4.127 m) and EBITDA, a measure of operating profit, increased to DKK 403,000 (DKK 278,000). The company sold 444,000 tonnes of feed in Q3, compared to 453,000 tonnes in the same period last year.
Higher prices
The significant increase in revenue was mainly driven by higher market prices on raw material and to some extent currency development. Revenue for the year to date amounted to DKK 12.887 billion, compared with DKK 9.256 bn in the same period 2021.
Chief executive Carlos Diaz said: “Coping with the consequences of pandemic, followed by the war in Ukraine and our exit from Russia, our organisation has focused on improving commercial and operational excellence. Developing our processes and creating value from data analytics is more important than ever to counteract the inflationary effects on our costs.
The world around us is still very volatile, but I strongly believe we will conclude 2022 on a positive note.
BioMar CEO Carlos Diaz
“We have been engaged in creating efficiencies in our supply chain, while working together with our customers designing new solutions for existing and new commercial relationships. We are still not at a normal profit level, but we are moving in the right direction.”
Russia costs
BioMar said earnings continue to be impacted by the missing sales from Russia and by replacing raw materials from Russia/Belarus.
The group’s non-consolidated business, which comprises joint venture feed businesses in Turkey and China combined with associated companies, continue to demonstrate a positive development.
BioMar’s share of profit after tax was DKK 49 m (Q3 2021: DKK 36 m) and there are good prospects for the rest of the year.
“The world around us is still very volatile, but I strongly believe we will conclude 2022 on a positive note,” said Diaz.
“It has been a year where despite challenges we have managed to expand our business with the world leading company for intelligent feeding, AQ1, and are progressing with business development plans in different geographies.
“We are still challenged by lower volumes in some countries and a volatile market for raw materials and energy, but we have seen an impressive ability in our own organisation and in our commercial relationships to innovate for new ways of doing business and developing products.”
