August 16, 2021

BioMar reports Q2 steady growth in face of pandemic

BioMar continues a steady growth and delivered solid results in the second quarter of 2021 despite the pandemic, the company announced this month.

Both sold volumes and revenue went up in Q2 compared to the same period in 2020 while margins were challenged by a significant increase in raw material prices and logistic costs.

BioMar reported an increase in volumes sold in all divisions except BioMar's salmon division. The increase of volumes sold in Europe and Australia were counterbalanced by a decrease in volumes sold in Chile due to several factors including reduced biomass, algae bloom and a local strike in one of the company's three production facilities. The increase in total volumes sold was 4% compared to Q2 2020.

"We have managed to keep a good position in the markets despite intense competition for volumes and a situation where we have not been able to fully offset the steep increase in raw material prices. Our development of new product solutions and the close collaboration with our customers during this period of volatility, have been important drivers of our expansion in customer portfolio and volumes," said Carlos Diaz, chief executive officer of BioMar Group.

The global trend of recovery from the pandemic is seen across species and in Latin America, according to BioMar. Its shrimp feed business reported improved conditions in the market as it recovered from the consequences of export restrictions. The combination of an increasing biomass and a new mix of technical services, product solutions and value chain driven collaboration with customers, has placed BioMar in solid position in the market.

"We can clearly see that the global aquaculture industry has started to recover from the closing of the HORECA sector, the export and logistic challenges and the Mediterranean storm Gloria which, in 2020, destroyed a significant part of the net cages in the area," said Diaz. "However, we are challenged by raw material prices increasing beyond any expectations. This global development in raw material prices and freight costs puts pressure on our margins and earnings."

Diaz added: "We face a very tough scenario for global raw material development, but I am confident we will be able to deliver solid results for this year."

- Biomar