Feed producer made more money on same volume last year

Aquafeed producer BioMar has reported strong results for both the fourth quarter of 2023 and the full year.

“Despite volumes and revenue for the full year being on level with 2022, BioMar succeeded in improving EBITDA by 26%, when looking across consolidated companies and joint ventures,” the company said in a press release.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is an alternate measure of profitability to net income, although it has been criticised by some financial experts because it omits depreciation and capital costs.

“I am extremely satisfied with our business performance for 2023. We have continued to optimise our product portfolio and product concepts, being proactive to the development in the markets,” said chief executive Carlos Diaz.

“At the same time, we have improved our commercial performance both up- and downstream. Looking at the totality of our business, including our joint ventures in Turkey and China, the year summed up to a volume of 1.6 million tonnes, a turnover of DKK 20 billion and an EBITDA of DKK 1.4 billion.

“The results have been driven by our efforts in positioning ourselves as value creators for customers as well as suppliers. To us, it is becoming increasingly important to create partnerships with suppliers of novel raw materials as well as forward-looking customers who believe in building long-term business relationships instead of a transactional value chain. It is only possible to change the future if we together share an ambition of a sustainable and efficient aquaculture.”

Prioritised the long term

BioMar’s revenue for 2023 was DKK 17.878 billion, slightly higher than the DKK 17.861bn earned in 2022. Sales volume was 1.437 million tonnes (2022: 1.456m tonnes).

BioMar said that while biological conditions had been challenging in some geographies, the lower volumes had mostly been a result of a clear commercial positioning.

“We have prioritised to build long-term product collaborations with our core customers, rather than chasing volumes,” said Diaz. “This means that our volumes have stayed stable compared to 2022. We are building a healthy business, which can further propel the development of our financial performance as well as our sustainability ambitions.”

According to a presentation by BioMar’s Danish owner, Schouw & Co, BioMar sold less salmon feed in 2023 but this was offset by higher volumes of sales for other species. EBITDA in all salmon regions was better or at the same level as last year.

It added that there is a continued good outlook for shrimp feed in Asia, while ion Chile a recovery for associate company Salmones Austral is expected. This year’s results are expected to be on par with 2023.