"We have experienced a very satisfactory first half of the year," said BioMar's CEO, Carlos Diaz.
Photo: BioMar.
BioMar presented its Q2 2024 results and, although volumes and revenues are lower than last year - its best results ever - EBITDA has increased by 36%. Thus, the feed producer said, "The quarterly reporting reveals that the business is ready to deliver on all-time high EBITDA for the year."
However, the Danish company also warns that volumes and revenues this year are expected to be slightly lower than in 2023 due to lower raw material prices in several categories, along with decreasing volumes in the salmon division, driven by different sales contract positions and biological issues in some markets.
Nevertheless, the leading aquaculture feed manufacturer points out that it showed solid results in the first half of 2024 across its divisions. "Midyear, BioMar discloses strong momentum aiming for another all-time high full year result," it remarked in the release announcing the results.
"We have experienced a very satisfactory first half of the year," summarized CEO Carlos Diaz. According to him, building upon a strong Q1, BioMar has maintained momentum, mainly due to its focus on operational and commercial excellence.
"We are consolidating our strategic move away from being merely a transactional provider, into being a partner going above and beyond, enabling our customers to meet their efficiency goals and at the same time focus on people and planet, while maximizing performance and animal health," Diaz continued.
As BioMar's CEO explained when presenting the 2023 results, the world leader in sustainable aquaculture feed focuses on long-term collaborations, rather than "chasing volumes."
"This approach has enabled us to attract and develop our customer base, but it has also affected our volume growth since we are focusing on customers and contracts, which backs this approach and allows us to be efficient together in a win-win relation," he said now.
This trend towards record EBITDA was already glimpsed in Q1 2024 results. Then, despite an 8% decline in sales volume compared to 2023, the feed company achieved record EBITDA while, according to Carlos Diaz, "moving the needle significantly on sustainability."
In light of that decline in sales, even then, after closing the first quarter of the year, BioMar decided to adjust its revenue forecast for the full year 2024 to DKK 17-18 billion (EUR 2.2-2.4 billion / USD 2.5-2.6 billion), slightly down from an earlier estimate of DKK 17.5-18.5 billion (EUR 2.3-2.4 billion / USD 2.5-2.7 billion). At the same time, the company raised its EBITDA forecast for the year, expecting to reach between DKK 1.27-1.35 billion (EUR 170.2-180.9 million / USD 187.1-198.9 million).
The company said at the time that associated companies and joint ventures are expected to contribute around DKK 60 million (EUR 8 million / USD 8.6 million) for the share of profit after tax. Now, Carlos Diaz has reaffirmed that idea.
"Our JV feed companies, which are both located in important growth markets, Turkey and China, are continuing their good development. The revenue is lower due a decrease in raw material prices combined with a transition of commercial activities towards less credit risk. However, we have a focus on commercial excellence and internal efficiency, which enables us to be close to the level of 2023 when looking at EBITDA," concluded BioMar's CEO.
