BioMar has reported revenue up by 34% and volume sales by 8% compared to Q1 2021. On the other hand, the main challenges right now for the company are the raw material prices, cost of energy, and the trading suspension with Russia.
So, earnings for Q1 dropped due to a legal dispute in Norway and changed accounting policies for IT investments. EBITDA for Q1 2022 thus came to DKK 54 million, compared with DKK 133 million in Q1 2021. The company expects the increase in prices on raw materials, freight, and energy to be continued.
The decision to suspend trade with Russia has impacted sales of finished goods as well as purchase prices for raw materials, as suppliers needs to be substituted, according to the company. Despite this background, BioMar now expects to generate fullyear 2022 EBITDA in the DKK 890- 940 million range.
Regarding this, CEO of BioMar Group, Carlos Diaz stated: "We took a tough decision following our values when we suspended trading with Russia. The sale has been for years a very important part of our business, especially for the units in Denmark and Norway".
On the other side, he added: "At the same time, we have sourced some of our key raw materials in the area now affected by the conflict. However, our customers must be able to rely on us as a business partner with high ethical standards."
Finally, Diaz concluded: "My only concern is that some of our international competitors have not taken the same position. Otherwise, is rather taking advantage of the situation. But even knowing this, we would have taken the same decision, since it is the right thing to do. This is not a food crisis for the people in Russia, but a humanitarian crisis for the people in Ukraine."