Carlos Diaz, CEO of BioMar.
Photo: BioMar
BioMar’s parent company, Schouw & Co., has announced plans to list the aquaculture feed company on the stock market, as BioMar reported a 7% increase in first-quarter feed volumes and a 3% rise in EBITDA.
The Danish industrial group said on 1 May that the assessment of a potential value creation through a separate listing of BioMar was progressing, with the company now preparing for life as a listed business. Schouw & Co. had first indicated it was evaluating a potential separate stock market listing in November 2024.
BioMar's CEO Carlos Diaz said the prospective flotation would "mark a significant milestone in BioMar’s history."
"In addition to providing direct access to capital markets, it will enhance transparency and increase public awareness of our company and brand, supporting our ability to attract and retain talent,” he said, in a release announcing the company's first-quarter results.
“BioMar is ready for life as a listed company and well positioned to continue its growth journey with a solid and resilient business model, driven by our high-quality product offering, commitment to sustainability and advanced feeding technology in a market defined by rising global demand for farmed fish and shrimp,” he added.
The flotation update came as BioMar reported it had achieved strong first-quarter results, with feed volumes rising 7% year-on-year to a new record high for the first quarter.
EBITDA increased by 3% to DKK 212 million (approx. €28.4m / $33.2m), which the company said was in line with expectations, while the return on invested capital reached 23.5%.
However, revenue declined by 6% during the quarter. BioMar said this was mainly due to lower raw material prices affecting feed sales prices, as well as temporarily weaker sales in its Tech Solutions business.
“We have once again proven our resilient business model. In a first quarter of the year characterised by significant geopolitical turbulence, we delivered strong results across our feed segments with growth in volumes as well as in earnings per tonne of feed sold, while minimising the negative effects of the turbulence for our customers,” Diaz said.
The CEO added that the results were achieved despite parts of the business being affected by environmental and biological conditions.
Barramundi is one of the warm-water species BioMar is now focusing on at its Aquaculture Technology Centre in Hirtshals, Denmark.
Photo: BioMar
BioMar said it is changing the commercial model for its Tech Solutions segment, moving away from infrastructure sales and towards direct sales channels, service models and recurring revenue.
The transition led to lower tech sales during the first quarter and is expected to affect first-half results, the CEO noted.
“This year is a stepping stone, preparing to deliver on the next phase of our strategic ambitions,” Diaz said.
“We are transforming the business model for aquaculture technology solutions, and we are preparing for further organic growth in our feed business with new capacity in Ecuador and China,” he added.
As previously reported by WeAreAquaculture, the company acquired full ownership of its operations in Ecuador and Costa Rica, and plans to add 50,000 tonnes of capacity at its facility in China, with a new production line expected to be operational in early 2027.
The company also recently announced it would be expanding its Denmark R&D centre to include barramundi and yellowtail kingfish.
