Lower volume but higher EBITDA for BioMar in 2024
Aquafeed manufacturer BioMar increased EBITDA – a measure of operating profit – by 18% last year, despite selling a lower volume of feed and making lower revenue.
BioMar’s consolidated companies sold 1.372 million tonnes of feed last year, down from 1.437 m tonnes in 2023. Nonetheless, the Danish company’s EBITDA (earnings before interest, tax, deprecation and amortisation) rose from DKK 1.25 billion in 2023 to DKK 1.476 bn (£166m at today’s exchange rate).
Chief executive Carlos Diaz said the increase in profitability was the result of “an unwavering strategic focus on optimising our product portfolio, combined with a series of operational excellence measures”.
He added: “The improvement was broadly based across divisions and business units and reflects our continuous efforts on products, performance and efficiencies in our factories and supply chain.”
Diaz said the drop in sales volume was partly a result of a policy to steer away from contracts with less potential for mutual beneficial partnership on advanced feed solutions and from sales to high-risk customers.
“In other words, we prioritise building long-term value together with our customers over transactional relations, volume and market share,” said Diaz. “At the same time, the volumes were affected by biological conditions in Norway and Chile plus energy shortages in Ecuador. Revenue declined 7% to DKK 16.6 billion reflecting the lower volume and lower raw material prices during the year.”
Revenue and EBITDA made by BioMar’s non-consolidated joint ventures in China and Turkey were a little lower than in 2023, at DKK 1.502 bn (2023: 1.844 bn) and DKK 166m (DKK 179m) respectively, but still did well, said Diaz.
BioMar expects to generate full-year 2025 revenue of about DKK 16-17 billion, but said changing market conditions and volatile prices of raw materials may impact the revenue forecast substantially. Given the current outlook, the company expects 2025 EBITDA in the range of DKK 1.470-1.570 billion.
