A difficult decision
BioMar Group shuts down all commercial activities with and within Russia as a consequence of the invasion of Ukraine. The trade ban has been approved by the Board, and the decision applies to all BioMar entities around the globe and includes sales of finished products as well as the sourcing of raw materials.
“This has not been an easy decision, but as a company driven by our purpose and values, we must take a stand”, explains Carlos Díaz, CEO in BioMar Group. “We believe it is our responsibility to make a positive impact on the environment and human rights around the world. Therefore, we will not collaborate with Russia while they are violating the sovereignty of Ukraine and causing a humanitarian crisis”, he states.
Impact in results
The feed manufacturer closed 2021 with 14% revenue growth, but with a slight decline in EBITDA compared to 2020 due to the global increase in raw material prices, logistic costs, and energy prices. So, BioMar assumes that raw material substitution and the loss of sales volume will have a significant impact on its 2022 results. Therefore, although this is an immediate decision, the company has said it will evaluate commitments and goods in transit in the supply chain case by case.
Moreover, the company claims that, despite business activities being disrupted, all their employees in Russia and Ukraine are being kept in employment and supported by the BioMar organisation. “Unfortunately, our decision will have a significant impact on our customers in Russia, and it might impact our formulation costs going forward, but we needed to draw a line in the sand. We do not hold the Russian people responsible, and we will do what we can to find solutions for our customers and employees. Despite the impact we believe is the right thing to do”, concludes Carlos Díaz.