Aarhus, Denmark-headquartered aquaculture feed supplier BioMar Group posted increased earnings for the third quarter of 2021, despite encountering high raw-material, energy, and logistics prices.
BioMar’s Q3 2021 revenue increased by 17 percent, or DKK 599 million (USD 91.6 million, EUR 80.5 million), to more than DKK 4.1 billion (USD 626.8 million, EUR 551.3 million), with 453,000 metric tons (MT) of feed sold compared to 408,000 MT in Q3 2020.
Its Q3 earnings before interest, taxes, depreciation, and amortization (EBITDA) for its consolidated holdings was DKK 282 million (USD 43.1 million, EUR 37.9 million), which was DKK 44 million (USD 6.7 million, EUR 5.9 million) less than a year previously.
However, BioMar said its non-consolidated joint-ventures and associates collected a DKK 36 million (USD 5.5 million, EUR 4.8 million) share of profit after tax in Q3 2021, compared to a DKK 44 million share of Q3 2020’s loss.
In a press release, BioMar said the improvement was generally attributable its 22 percent ownership of Salmones Austral in Chile, as settlement prices on farmed salmon “are now improving strongly” in the Chilean market from the low point created by the COVID-19 pandemic.
BioMar also reported that during the pandemic it has managed to grow commercial relationships across its divisions. This, it said, has been achieved through strong collaboration with customers to build new feed concepts and opportunities.
“Looking at the world around us, we are now in the middle of a situation, that is completely changing factors of our industry’s cost structure in a way and at a speed that we have not seen before,” BioMar CEO Carlos Diaz, said. “Through the pandemic, it has been difficult to conduct business, but our business model is founded upon a belief in local agility and empowerment of our business units which has enabled us to find strong commercial paths together with our customers. Now that the game is changing completely, we need, as an industry to find solutions on how to overcome this volatility.”
Diaz said current high prices for raw materials, freight, and energy are not expected to alleviate over the next few months, while the general supply situation is expected to remain challenging for BioMar.
“While it will affect our earnings in the short-term, we will make it a priority to be able to ship goods continually to customers worldwide,as we play an important role in the supply chain,” he said.
These circumstances led BioMar to lower its 2021 EBITDA guidance to a range of DKK 890 million to DKK 920 million (USD 136.1 million to USD 140.7 million, EUR 119.7 million to EUR 123.7 million) from the previous estimate of DKK 940 million to 985 million (USD 143.8 million to USD 150.6 million, EUR 126.4 million to EUR 132.4 million).
Photo courtesy of BioMar
