BioMar has reported strong financial results for the third quarter of 2019, highlighting a 3 percent year-on-year increase in volumes sold for the period.
Revenues have risen by 10 percent to DKK 3,40 billion (USD 502 million, EUR 455 million) from the DKK 3,10 billion (USD 458 million, EUR 415 million) seen during the same quarter in 2018, the Brande, Denmark-based aquaculture feed supplier said. A 28 percent improvement in earnings before interest, tax, depreciation, and amortization (EBITDA) when adjusting for the impact of IFRS 16 was also noted.
Earlier this year, BioMar announced a change in its Norwegian organizational setup and operating model, a shift that has ultimately resulted in “driving up earnings through recovery of lost volumes, gaining important contracts in the Norwegian market,” the company said. BioMar’s other salmon units, its shrimp segment, and its EMEA division are also reporting significant increases in volumes sold as well as “satisfactory profitability.” These developments have prompted the firm to raise its EBITDA guidance for the second time this year, from DKK 870-930 million (USD 128-137 million, EUR 116 -124 million) to DKK 900-930 million (USD 132-137 million, EUR 120-124 million).
“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 Carlos Diaz, CEO in BioMar Group. “We have seen very positive feedback on our product innovations, new novel raw materials as well as on our collaborative approach together with the customers developing product concept addressing our shared dedication to a sustainable and efficient aquaculture. At the same time, we have across the globe been introducing new feed concepts opening new possibilities for the consumers as well as the farmers. Our local agility combined with a solid global set-up has proven to be a strong competitive advantage.”
Consolidated year-to-date results for BioMar Group are already significantly ahead of 2018, the company said, however, associated companies in China and Turkey are delivering results below last year’s level.
“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. However, BioMar remains positive about the prospects for these two important aquaculture markets,” the firm said in a press release.
Moving forward, BioMar has big production plans for China, Australia, and Denmark, according to Diaz.
“In Q4 2019 and Q1 2020 we are, as previous 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,” he said.
Earlier in November, BioMar and Norway-based developer Orivo announced that an advanced DNA testing system they’ve been collaborating on for marine ingredients will be commercially available starting on 1 January, 2020. The system, which is the result of several years of R&D efforts, delivers reliable, accurate, and reproducible results, and is aimed at improving transparency and traceability in seafood value chains, the companies said.
“Reports of fraud in many of the world’s largest seafood markets highlights the importance of accurate and reliable traceability data throughout the value chain,” said Vidar Gundersen, the sustainability director for BioMar Group. “BioMar will now be able to genetically test whether the species composition in a sample of raw material matches the reported composition on the traceability certificate. BioMar has a great deal of trust in our suppliers and understands that both have a responsibility as stewards of the ocean. As such, we expect this new DNA-based test to play a crucial role in efforts focused on building consumer and stakeholder trust.”
“To have BioMar, one of the largest and most innovative aquaculture feed producers, join as our first client in this area has been key,” added Svein Erik Haugmo, CEO of ORIVO. We greatly appreciate the patience and faith they have shown during the development and testing stage of the technology. Their long-term commitment to this project is a sign that the service we are now providing is of value to the feed industry, and we hope this is just the beginning of a long and fruitful collaboration.”
ORIVO is looking to expand its footprint even further in the feed industry, Haugmo noted.
“Together with BioMar we have started working on selected feed ingredients, but these represent just a small part of the many industry-specific issues which we think can be solved with our technology. We are currently working very hard on developing tests that can address all of these issues, and we plan to launch these consecutively in the near future as soon as they are ready for the market,” Haugmo said.
ORIVO offers subscription programs with random analysis and mandatory next-level-invalue-chain checkpoints, batch certifications, product verifications (with the possibility of using the verification logo on the label), as well as product screening and benchmarking.
Photo courtesy of BioMar
