BioMar sees volumes down, revenue up for Q3

Carlos Diaz, CEO BioMar

Rising prices in the aquafeed market helped international feed supplier BioMar achieve a 41% increase in revenue for the third quarter of 2022, despite lower sales volumes year on year.

Earnings also recovered significantly compared to Q3 2021, up by 45%. The Denmark-based company is now raising its expected earnings guidance for the full year to the range of DKK 960m-1,000m (£113.5m – £118.2m).

BioMar said the significant increase in revenue was mainly driven by higher market prices on raw material and to some extent on currency movements. Revenue for the year to date amounted to DKK 12,89m (£1.52bn), compared with DKK 9,256m (£1.09bn) in the same period in 2021.

Carlos Diaz, BioMar Group CEO, said: “Coping with the consequences of pandemic, followed by the war in Ukraine and our exit from Russia, our organisation has focused on improving commercial and operational excellence. Developing our processes and creating value from data analytics is more important than ever to counteract the inflationary effects on our costs. We have been engaged in creating efficiencies in our supply chain, while working together with our customers designing new solutions for existing and new commercial relationships. We are still not at a normal profit level, but we are moving in the right direction.”

Earnings continue to be impacted by the missing sales from Russia as a result of the Russia-Ukraine war, Diaz said, as well as the cost of replacing raw materials from Russia and Belarus.

He added that BioMar’s non-consolidated business, which comprises the joint venture feed businesses in Turkey and China combined with associated companies, continue to demonstrate a positive development. BioMar’s share of profit after tax reached DKK 49m in Q3 (£5.79m) compared to DKK 36m in Q3 2021 (£4.25m), with good prospects toward the end of 2022.

Diaz said: “The world around us is still very volatile, but I strongly believe we will conclude 2022 on a positive note. It has been a year where we despite challenges have managed to expand our business with the world leading company for intelligent feeding, AQ1 [the shrimp feeding system specialist acquired by BioMar in April this year], and are progressing with business development plans in different geographies.

“We are still challenged by lower volumes in some countries and a volatile market for raw materials and energy, but we have seen an impressive ability in our own organization and in our commercial relationships to innovate for new ways of doing business and developing products.”