BioMar raises earnings forecast for second time
Feed manufacturer BioMar has reported a 28% rise in EBITDA and a 10% increase in revenue in the third quarter of 2019 compared to the same period last year. Volumes sold increased by 3%.
Denmark-headquartered BioMar said internal efficiencies and the development of advanced feed solutions were now driving up earnings through recovery of lost volumes in the Norwegian market.
Other salmon units, the shrimp segment, and the Europe, Middle East and Africa division were also reporting significant increase in volumes sold and satisfactory profitability.
“This development brings BioMar in shape to raise the EBITDA guidance for the second time in the year to DKK 900-930 million (£104-108m) from previously DKK 870-930,” said the company in a press release.
“We have been through a tough period adjusting the company to the challenging situation in Norway, but I believe we chose the right path readjusting the whole business model,” said chief executive Carlos Diaz.
BioMar said volumes sold in China declined due to a more competitive market in one of the provinces, while volumes sold in Turkey declined due to challenging macroeconomic conditions. But the company remains positive about the prospects for both markets.
“In Q4 2019 and Q1 2020 we are, as previously announced, adding significant production capacity in China, Australia and Denmark. I am confident that we can continue our growth journey with solid financial results. 2019 is proof that we are on the right track driving a healthy business,” said Diaz.