BioMar trades profit-per-tonne for bigger sales volume
BioMar sold 14% more aquafeed in the second quarter of this year than in the same period last year, but made a little less revenue and EBITDA, as a result of having larger customers with larger volumes. Nevertheless, it maintains expectations of a good full-year result.
“As a part of our strategic commitment to growth, we have successfully continued the increase in sales volumes in Q2, reinforcing value-creating partnerships with key customers across our markets. I am proud to witness that this growth was achieved with healthy profitability, improved cash flow and a solid ROIC (return on invested capital),” said chief executive Carlos Diaz in a press release.
“As expected, a change in customer mix towards large customers with larger volumes impacted profit measured per tonne, while we continue our focus on achieving the critical volumes to be efficient and competitive, while optimising our cash discipline.”
The Danish company made EBITDA of DKK 349 million (£40.3m) in Q2, lower than the DKK 361m made in what it said had been an “exceptionally good” Q2 last year.
The feed company’s joint venture feed companies in China and Turkey have reported an EBITDA for the quarter at DKK 48m against DKK 64m in Q2 2024.
BioMar expects to generate full-year 2025 revenue of about DKK 16.3-17.0 billion compared to previous guidance at DKK 16.0-17.0bn, but added that changing market conditions and volatile prices of raw materials may as always impact the revenue forecast substantially.
Due to the result for the first half of 2025 and the expectations for H2 2025, BioMar is increasing its EBITDA guidance to DKK 1,490-1,570 million from previous DKK 1,470-1,570m.
