BioMar posts best-ever first half financials in 2020

Published on
August 17, 2020

BioMar posted strong sales and higher earnings in the second quarter of 2020, lifting the company to a record first-half of the year.

According to the new data, sales volume in Q2 increased by 9 percent over Q2 in 2019, while revenue generated increased by 7 percent. Sales were largely boosted by strong performances in the company’s salmon division, the company said.

BioMar Group CEO Carlos Diaz said collaboration with customers and a strong product portfolio have been the secret to the company’s success.

“We have seen that in times of crisis, solutions are to be found working together across the value chain. During the last months we have collaborated with suppliers and customers ensuring business continuity and a stable food supply to the end-consumers,” Diaz said. “At the same time, we have experienced an immense dedication from our employees engaging in delivering high quality products and very competitive product solutions to our customers despite lockdowns and market challenges.”

Revenue in Q2 2019 was DKK 2.1 billion (USD 339 million, EUR 286.9 million) compared to DKK 2.6 billion (USD 428.7 million, EUR 361.8 million) in Q2. For the first half overall, revenue came in at DKK 5.1 billion (USD 807.5 million, EUR 681.5 million), compared to DKK 4.7 billion (USD 739.9 million, EUR 6245.4 million) in the first half of 2019.

The increased revenue contributed to a higher earnings before interest, taxes, debt, and amortization (EBITDA). First-half EBITDA in 2020 was DKK 380 million (USD 60 million, EUR 51 million), compared to DKK 322 million (USD 51 million, EUR 43 million) in 2019.

Total volumes increased as well, with BioMar selling 579,000 metric tons (MT) of product in the first half of 2020, compared to 535,000 MT in 2019.

The improvements, according to BioMar, came in spite of challenges in some sectors of the business, largely brought about by the COVID-19 pandemic. The shrimp feed sector, for example, has been impacted by the complications in Ecuador’s shrimp exports to China, which nosedived after COVID-19 was discovered on exterior packaging. While those complications are starting to abate, significant damage was done to BioMar's related business operations.

In addition, according to BioMar, Mediterranean markets have been challenged by COVID-19 related closures of the hotel, restaurant, and catering sectors. Plus, a storm in Spain destroyed a significant amount of farming capacity.

“This spring and early summer have been a very challenging and volatile period for all our business units, and we have constantly been on our toes,” Diaz said. “Fortunately, we have built an operation model where local agility is a cornerstone. Hence our business units have been empowered to find solutions together with the customers as the situation evolved. Being guided by a strong purpose makes it easier to be aligned and innovate when the world is constantly changing.”

BioMar recently established a new production line in June, which increases the annual capacity at its Brande, Denmark-based facility by 25 percent. The company has also opened new Chinese and Australian facilities, which helped contribute to a positive first quarter.

Even with the positive financial news, Diaz still cautioned that the company is still navigating the complications of the pandemic, and he anticipated further impacts to affect the company in the future.

“I am proud, we are getting through the first period of the pandemic with such positive results,” he said. “However, we are not on the other side yet and there will most likely be a further business impact from the challenging market conditions for our customers and as BioMar we will be there to support.”

Photo courtesy of BioMar

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