The quarterly release from BioMar reveals as expected a solid growth across markets with a significant increase in volumes and revenue. However, the bottom-line results are affected by global increases in raw material prices, logistic costs, and energy prices.
During the pandemic, BioMar has managed to grow commercial relationships across the divisions through strong collaboration with customers to build new feed concepts and commercial opportunities. The commercial success is being emphasised by the quarterly results for Q3 2021, where the volume sales grew by 11% year-on-year and reported revenue was up by 17%.
“Looking at the world around us, we are now in the middle of a situation, that is completely changing factors of our industry’s cost structure in a way and at a speed that we have not seen before. Through the pandemic, it has been difficult to conduct business, but our business model is founded upon a belief in local agility and empowerment of our business units which has enabled us to find strong commercial paths together with our customers. Now that the game is changing completely, we need, as an industry to find solutions on how to overcome this volatilityâ€, explains Carlos Diaz CEO BioMar Group.
“The current situation of high prices of raw materials, freight and energy is unfortunately not expected to improve over the next few months and the general supply situation is expected to remain challenging. While it will affect our earnings in the short term, we will make it a priority to be able to ship goods continually to customers worldwide as we play an important role in the supply chainâ€, added Diaz
The EBITDA for the quarter fell from DKK 326 million (USD in Q3 2020 to DKK 282 million (USD in Q3 2021 for the consolidated companies, while the non-consolidated joint ventures and associates are recognised in the Q3 2021 consolidated financial statements at a DKK 36 million (USD share of profit after tax, compared with a DKK 44 million (USD share of loss in the Q3 2020 period. The significant improvement was generally attributable to Salmones Austral in Chile, as settlement prices on farmed salmon are now improving strongly in that market from a low point caused by the coronavirus pandemic.
Against this background, BioMar has lowered its 2021 EBITDA guidance to the DKK 890–920 million (USD range from the previous estimate of DKK 940–985 million (USD .
BioMar are innovators in high performance aquaculture feed dedicated to doing our part in creating a healthy and sustainable global aquaculture industry. BioMar operates 17 feed factories across the globe in Norway, Chile, Denmark, Scotland, Spain, France, Greece, Turkey, China, Vietnam, Costa Rica, Ecuador, and Australia. Worldwide, we supply feed to around 90 countries and for more than 45 different species. BioMar is wholly owned by the Danish industrial group Schouw & Co, which is listed on the NASDAQ, Copenhagen. www.biomar.com
