Carlos Diaz, CEO of BioMar.
Photo: BioMar.
BioMar Group has announced an impressive start to 2024, reporting a record first quarter with an EBITDA exceeding DKK 310 million (USD 44.6m / EUR 41.6m).
This achievement marks the best opening quarter in the company's history, BioMar confirmed in a press announcement.
The remarkable results were fuelled by higher margins following a better product mix and commercial excellence efforts, the company said.
Despite facing an 8% reduction in sales volume compared to the first quarter of 2023, the company has seen substantial growth in the shrimp feed sector, which helped offset declines in the salmon feed market.
The decrease in volume is attributed first of all to biological challenges across various markets, and secondly to BioMar's deliberate shift towards fostering long-term partnerships with clients, focusing more on value creation rather than expanding market share.
This strategic move is aligned with lower raw material costs and fluctuating exchange rates, which also influenced the quarter's outcomes.
"After a strong 2023, we have managed to keep momentum and deliver a very strong Q1," said Carlos Diaz, CEO of BioMar Group.
"All divisions have contributed with results above the expected, which has added up to the overall record for the group. I am proud of the commitment from our employees across the world, and very proud to experience the positive outcome of our increased focus on sustainability as well as our commercial excellence projects."
Diaz stressed BioMar's core focus on sustainability. "We can see that we are moving the needle significantly on sustainability."
"With our Blue Impact product portfolio and the customer collaborations around science-driven reductions in scope 3 emissions, we have positioned us as a strong partner, driving value for both our customer and their customers," he explained.
In light of these developments, BioMar has adjusted its full-year revenue forecast for 2024 to DKK 17.0-18.0 billion, down slightly from a previous estimate of DKK 17.5-18.5 billion.
However, the company has raised its EBITDA forecast for the year, expecting to achieve between DKK 1,270 million and DKK 1,350 million, based on its robust operational strategy and market positioning.
BioMar's associated companies and joint ventures are expected to contribute to the full-year results with around DKK 60 million (USD 8.6m / EUR 8m) for the share of profit after tax.
The excellent Q1 results continue the trend from last year, when BioMar achieved its best-ever annual results, with the company's EBITDA surging 26% in 2023 compared with the previous year.
