November 13, 2018
BioMar raises EBIT guidance for 2018
Following a warm summer in Europe, BioMar Group is "recovering significantly," the company said, citing a strong Q3 in which it is close to outperforming the combined results of Q1 and Q2.
All its markets except Norway have shown performance above expectations. This leads to a raise in the EBITDA guidance for the full year.
BioMar reported a 2% year-on-year increase in volumes sold in the third quarter of 2018. While the salmon units in Northern Europe reported the expected decline in revenue, the remaining units increased revenue by 16% compared to Q3 2017. This development brings BioMar in shape to raise its EBITDA guidance for the year from the range of DKK 665-705 million (US$100-106.1 million) to a range of DKK 690-715 million (US$104-108 million).
"We knew that Q3 was going to be another challenging quarter for the salmon division due to the tough competition, especially in Norway. However, we clearly see light ahead in terms of recovering volumes and results," said Carlos Diaz, CEO of BioMar Group.
"We have taken several measures improving our long-term financial performance, striving to increase efficiency while at the same time leveraging on our core strength being locally agile with a strong focus on innovation and collaboration. I believe that we in a short time will see our performance in Norway back on track."
The year-to-date (YTD) results of BioMar Group are ahead of 2017, mainly due to a strong performance in the new business units in Ecuador, Turkey and China. While the consolidated results are in line with the results for 2017, the associated companies and joint ventures contribute with $42 million to the Group compared to $16 million in 2017.
"Back in 2016, we decided to follow a growth strategy comprising organic as well as in-organic growth. The result of this effort is now paying off. We have during the last year been integrating Alimentsa in the Group and we have already experience positive feedback from the market on our contribution to the development of the shrimp industry," Diaz added.
"At the same time, we continue to see a positive development in China and Turkey, where we are building up completely new markets with solid growth rates and results. All in all, I must say that we are in the midst of a very positive development for the Group."