Solid third-quarter results for 2024 have been reported by BioMar, which also indicate that the company is on track to meet its expected earnings for the year. However, it has been noted that full-year revenue expectations have been slightly lowered due to a combination of some issues like decreasing raw material prices and lower volumes, influenced by biological conditions in Norway, as energy crisis in Ecuador impacting in shrimp feed production, and a focus on receivable risks in the Mediterranean area, as Carlos Diaz, the CEO of BioMar explained.
In the third quarter of 2024, compared to the same period in 2023, the company reported a decrease in volume from 466,000 tons to 429,000 tons. Revenue also saw a decline, falling from DKK 5,814 million (€781.98 million) in Q3 2023 to DKK 5,117 million (€688.24 million) in Q3 2024. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) slightly decreased from DKK 470 million (€63.22 million) in the previous year to DKK 463 million (€62.27 million) in this quarter.
For the non-consolidated joint venture feed companies, representing 100% of their operations, revenue decreased from DKK 438 million (€58.91 million) in Q3 2023 to DKK 362 million (€48.69 million) in Q3 2024. Similarly, EBITDA dropped from DKK 40 million (€5.38 million) in the previous year to DKK 26 million (€3.50 million) in the current quarter, reflecting a tougher economic environment or operational challenges within the joint ventures.
Despite these challenges, the company is doing well overall. “Our focus on functional feed solutions combined with shared value creation with our customers is providing tailwind,” commented Carlos Diaz.
Due to this strong performance and positive outlook, they have slightly adjusted their expected EBITDA for 2024 to be between DKK 1,410 million (€189.6 million) and DKK 1,460 million (€196.4 million).
The news on the quarterly results is released together with an announcement from Schouw & Co., the owners of BioMar, that they have initiated an evaluation of a potential listing.
“Schouw & Co. has initiated an evaluation of a possible separate listing of BioMar. Since BioMar became part of the Schouw & Co. Group in 2005, we have grown to become a leading global producer of sustainable aquaculture feeds and have almost six-doubled our revenue. A potential separate listing of BioMar could provide the right platform for BioMar to continue our growth trajectory” says BioMar CEO Carlos Diaz and continues.
“If Schouw & Co. eventually decides to pursue a separate listing of BioMar, they intend to remain the majority shareholder of BioMar and will continue to support our development through both organic and acquisitive growth.”
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