May 27, 2021
Hamlet Protein reports strong growth in 2020 annual report
Horsens, Denmark-headquartered Hamlet Protein, producer of soy-based specialty ingredients for young animal nutrition, has released its 2020 annual report. The company exceeded its budget targets, showing strong growth versus prior year.
It reported increased volumes across all regions, and coupled with an optimised cost structure, resulted in a significant EBITDA increase versus prior year. New financing agreements increased the company's liquidity and provided Hamlet Protein flexibility to pursue further growth.
Hamlet Protein's CEO Erik Visser, appointed mid-2019, has led a restructuring of the company and a review of its strategy. Cost levels were aligned with business size, a hands-on management team was appointed and a more customer-focused approach to the business was introduced.
Hamlet Protein's 2020 recurring EBITDA increased by 42% compared with 2019. This was driven by a volume growth of 19% versus prior year and improved cost management. The Asia-Pacific region, which saw China recovering from African swine fever (ASF), was the main contributor with a 58% volume increase. Even as market conditions for swine producers deteriorated in H2-2021, the North America and Central America region (NCA) still delivered 15% above last year. The Europe, Middle East and Africa region (EMEA), with a slight declining performance in Denmark, grew by 4% and the South America region (BRSA) increased 32% versus 2019.
"COVID-19 and ASF provided challenging market conditions in 2020. Even though the market demand for animal protein proved to be resilient, we saw different effects across the many markets we serve. Having invested in local resources in our most important export markets, we were well positioned to address changing conditions. And with the right COVID-19 measures in place we were able to secure an uninterrupted supply to our customers," said Visser.
"We have successfully completed a transition that sets us up for further growth. We have intensified the cooperation with our distributors, focused on onboarding specific skillsets across departments, invested in our sustainability agenda and strengthened the branding and positioning of Hamlet Protein. I am very proud of the team effort that made that possible," added Visser.
Cash flow from operations increased significantly versus 2019 and is now positive again, following improved EBITDA and working capital management. A new financing agreement improved Hamlet Protein's liquidity and reduced its interest costs.
"We look to the future with confidence. The market for young animal nutrition continues to grow. In 2021 additional production capacity in our US plant will become available, our remodelled headquarter office will be opened in Denmark and two new products, targeting swine and poultry producers, will be launched," concluded Visser.
CEO of Hamlet Protein, Erik Visser