Strong salmon sector leads to increased feed sales, earnings for BioMar

Brande, Denmark-headquartered aquaculture feed supplier BioMar Group achieved larger sales and higher earnings in the third quarter of 2020, keeping the company on course for a “robust” full-year.

According to its report for the last quarter, released by parent company Schouw & Co., BioMar continued to deliver solid financial results in the three-month period, with an 8 percent increase in volume sold and a 4 percent rise in revenue compared with Q3 2019 at 408,000 metric tons (MT) and DKK 3.5 billion (USD 557.8 million, EUR 469.7 million), respectively.

The company said its growth was mainly delivered by a good performance in the salmon markets across its operational geographies. Meanwhile, its other divisions experienced slightly declining sales volumes due to disrupted shrimp and fish exports related to the ongoing coronavirus situation, in addition to the medium-term consequences of the winter storm on the Spanish coast at the start of the year.

“We have been able to steer the business through this period of global uncertainty with solid results,” BioMar CEO Carlos Diaz said. “Markets are changing around us; the sales channels for fish and shrimp are being disrupted by the affected [hotel, restaurant, and catering] sector and our customers are facing difficult times requiring new solutions. We are constantly striving to be agile and to support our customers across the globe as much as possible.”

Q3 2020 earnings before interest, taxes, debt, and amortization (EBITDA) was DKK 326 million (USD 52 million, EUR 43.7 million), which was DKK 19 million (USD 3 million, EUR 2.5 million) less than a year previously. However, its year-to-date EBITDA of DKK 707 million (USD 112.7 million, EUR 94.9 million) is DKK 40 million (USD 6.4 million, EUR 5.4 million) ahead of last year.

Diaz said it was difficult to predict which way the market will go over the next few months.

“Are we facing new massive lockdowns across the globe, or will there soon be light at the end of the tunnel? Right now, we will continue taking care of our people and securing supply and business continuity for our customers,” he said. “We are heading for a full year, where we are comfortable about the guidance we have given to the stock market. Despite the impact of the coronavirus on the HoReCa sector, we see demand for fish and shrimp increasing impressively through other channels, so we are confident in the fundamentals of the aquaculture industry.”

Photo courtesy of BioMar


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