Aarhus, Denmark-based aquaculture feed manufacturer BioMar reported revenue of DKK 3.7 billion (USD 54 million, EUR 49.7 million) for the first quarter of 2023, a 21 percent year-over-year increase.
“I am very satisfied with the overall performance of BioMar. Despite some challenging market conditions in both the salmon and the shrimp industry, we are continuing consolidating our position,” BioMar CEO Carlos Diaz said in a statement. “At the same time, we have reflected our actual cost structure in our prices and built new pricing models together with our customers, ensuring a solid financial performance regardless of the turbulence.”
Earnings before interest, taxes, depreciation, and amortization (EBITDA) was also up substantially from Q1 2022, increasing 117 percent to DKK 117 million (USD 17.3 million, EUR 15.7 million). According to parent company Schouw & Co., BioMar’s Q1 2022 EBITDA was unusually low due to the company’s decision to pull out of Russia last year, as well as an unsuccessful lawsuit in Norway.
BioMar halted all Russian trade in 2022 in response to that country’s invasion of Ukraine.
“This has not been an easy decision, but as a company driven by our purpose and values, we must take a stand. We believe it is our responsibility to make a positive impact on the environment and human rights around the world. Therefore, we will not collaborate with Russia while they are violating the sovereignty of Ukraine and causing a humanitarian crisis,” Diaz said at the time.
As part of that decision, the company kept all its staff in Russia and Ukraine employed.
While the ongoing conflict in Ukraine continues to impact commodity markets, resulting in volatile prices and limited accessibility to materials, BioMar’s Europe, Middle East, and Africa division “is getting back on track after the decision to pull out of Russia,” the company stated.
Meanwhile, joint ventures in China and Turkey have proven to be substantial drivers of revenue.
“As part of our growth strategy, we took a decision to be present in the important aquaculture markets in Turkey and China. It took time to build business, but now we can see that the joint effort with our partners is paying off. We have more than doubled both revenue and EBIT since Q1 last year," Diaz said.
The joint ventures in China and Turkey together produced revenue of DKK 471 million (USD 70 million, EUR 63.2 million), up 67 percent year over year, and EBITDA of DKK 45 million (USD 6.7 million, EUR 6 million), up 125 percent year-over-year, according to company Schouw & Co.
The company’s guidance for 2023 remains unchanged, with revenue projected to reach DKK 18 billion to DKK 19 billion (USD 2.7 billion to USD 2.8 billion, EUR 2.4 billion to EUR 2.5 billion) for the full year, up from record earnings of DKK 17.9 billion (USD 2.6 billion, EUR 2.4 billion) for 2022. From 2018 to 2022, BioMar's revenue grew 73 percent.
Photo courtesy of BioMar
