BioMar chief executive Carlos Diaz is confident of capturing more business from salmon farmers. Photo: BioMar

BioMar cuts revenue forecast as salmon feed sales decline

Feed manufacturer BioMar has reported increased sales volumes and revenue for the first half of 2018 but has lowered its full full-year revenue forecast by DKK500 million (£60m) because of tough competition in the Norwegian salmon feed market.

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Sales volume increased 8% compared to same period last year, mainly driven by the new shrimp business unit in Ecuador, Alimentsa.

The Danish company said innovative products integrating high performance, functional feeds and sustainability concepts had shown to be a very strong platform for growth in the new markets.

“We see a strong performance in Ecuador as well as in our newly established companies in China and Turkey,” said chief executive Carlos Diaz.

“We are proud that we have been able to integrate the new business units in BioMar Group while at the same time enhancing growth, innovation and collaboration with the customers.”

However, a decline in the salmon market has led to BioMar lowering its full-year forecast to DDK10 billion.

‘Accelerating development’

Diaz remained positive, stating: “The competition is merely accelerating our speed of development.

“We have already taken initiatives to increase our volumes and to achieve sustainable profitability. There is no doubt that we will continue to take a lead, collaborating with our customers and the industry in general, driving innovation, sustainability and efficiency.

“I am confident that we have the means to get our growth in the salmon markets back on track.”

The company is preparing for growth by constructing factories in Australia and China, as well as installing new lines in Denmark and Ecuador.