August 19, 2019
BioMar reports solid half-year results
BioMar's half-year report has underlined the company's long-term solid performance through increased volumes and revenue compared to 2018.
The positive development leads the aquaculture feed supplier to increase its guidance for a full year in terms of revenue and EBITDA.
BioMar's sales volume increased 4% compared to same period last year driven by strong performance in the salmon markets in the United Kingdom and Chile as well as within business units producing feed for other species across the world.
Innovative product offerings and close cooperation with customers designing advanced feed solutions have been some of the factors driving the results, according to BioMar.
"Feed is moving away from being a commodity product towards being a significant driver of welfare in the farms as well as a part of the value proposition towards the end-consumers. Many of our customers are determined to ensure, that we together deliver healthy and sustainable seafood. The agenda of food is changing and our opportunities for taking responsibility expands along with rapid development within the end-consumer segments", said Carlos Diaz, CEO of BioMar Group.
During the last half-year, BioMar's business unit in Norway has implemented a new operating model and setup that enables higher efficiency and the facilitation of agile collaboration. At the same time, new products have been brought to market, creating new opportunities for combining high performing feed solutions with advanced functional feed.
However, the lower sales volumes during 2018 still impact the overall results of the group.
Diaz added: "We experience that our initiatives have been well received and we feel that we are regaining our good foothold in the market. The new management team has brought very strong technical profiles to the forefront of our business, enabling next generation of product innovation together with the customers and a reinforced closeness to the market. I am confident, that we will continue to see improved results within a very short timeline."
During the last half-year, BioMar has continued the development of the business, acquiring full ownership of a joint-venture factory in Chile, which provides new possibilities in terms of agility and increased volumes.
At the same time, significant capacity has been added in Ecuador supporting the positive development of the shrimp business.
"We are confident that we are on the right track. Based on the positive development, we increase our guidance of full-year 2019 revenue from DKK10.3 billion (US$1.5 billion) to about DKK10.8 billion (US$1.6 billion) and EBITDA from previous DKK820-890 million to DKK870-930 (US$129.4-138.3 million)", said Diaz.