BioMar doubles Q1 operating profit
Aquafeed producer BioMar more than doubled its operating profit (EBITDA) in the first quarter of this year compared to the same period in 2022, it said today.
The Danish group’s consolidated companies made EBITDA of DKK 117 million (£13.8m) in Q1 2023, compared to DKK 54m in Q1 last year, when business was disrupted by Russia’s invasion of Ukraine. Volume sold was 286,000 tonnes, which is 2,000 fewer tonnes than in Q1 2022.
Revenue for the first quarter of this year increased to DKK 3.671 billion (Q1 2022: 3.035bn) for consolidated companies. The group’s non-consolidated joint ventures in China and Turkey made revenue of DKK 471m in Q1 2023, up from DKK 282m in the same period last year. EBITDA reached DKK 45m, more than double the DKK 20m earned in Q1 2022.
Salmon division stable
BioMar said that while the EMEA (Europe, Middle East, and Africa) division is getting back on track after the decision to pull out of Russia in 2022, the salmon division has delivered stable results.
In the LATAM (Latin America) division, volumes have increased, mainly driven by the continuous development of strong product offerings and new production capacity in Ecuador.
“I am very satisfied with the overall performance of BioMar,” said chief executive Carlos Diaz in a press release. “Despite some challenging market conditions in both the salmon and the shrimp industry, we are continuing consolidating our position. 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.
Effort paying off
“Furthermore, I am very proud to see the results of our non-consolidated joint-ventures reaching new levels. 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.”
BioMar is maintaining the guidance for a 2023 revenue of DKK 18-19bn and EBITDA guidance in the range of DKK 1.08-1.150bn.