Denmark-headquartered aquaculture feed supplier BioMar Group posted lower earnings for the first-quarter of 2021, despite “strong growth” in its salmon markets and “robust results” in its shrimp sector.
According to its report for the last quarter, BioMar’s revenue for the first three months slipped by DKK 100 million (USD 16.4 million, EUR 13.4 million) to DKK 2.27 billion (USD 371.3 million, EUR 305.3 million), with 266,000 metric tons (MT) sold, compared with 270,000 MT in Q1 2020.
Its earnings before interest, taxes, debt, and amortization (EBITDA) for the period was DKK 140 million (USD 22.9 million, EUR 18.8 million), which was DKK 19 million (USD 3.1 million, EUR 2.6 million) less than a year previously.
In a press release, BioMar stated that it had concluded 2020 with solid growth across the business, despite the impact of the COVID-19 pandemic and a “lethal storm” in the Mediterranean area, and that 2021 has continued the positive trend.
However, the first-quarter was impacted by lower sales in Chile and foreign exchange developments, it said.
The Chilean volumes were lower than last year due to a coincidence of factors, including lower biomass, a change in customer contracts and changing feeding plans due to the pandemic as well as the emerging algae bloom.
“We are in a very good position in Norway, U.K. and Australia, collaborating closely with our customers striving to be the preferred feed supplier. I believe they experience the change which has happened in BioMar over the last years in terms of new novel ingredients, new product solutions and high-performing teams. Now we just need to pass the bump on the road in Chile,” BioMar CEO Carlos Diaz said.
Diaz also highlighted that the group’s LatAm division, covering Latin American operations involving shrimp and fish species other than salmon, has seen “positive development” with its shrimp feeds after being impacted by tough market conditions last year.
“Since the beginning of the pandemic, the shrimp industry in Ecuador has been suffering, both in terms of the actual pandemic and the Chinese import restrictions. However, BioMar has managed to get reasonably well through the first waves of the pandemic,” Diaz said. “We have been working full steam introducing new products and technical services to the market, including products from our new extruded line. Now, we see our effort paying off in terms of increased volumes and revenue compared to Q1 2020.”
Expecting a gradual normalization of market conditions in 2021, BioMar anticipates that its sales volumes will increase. It therefore continues to expect to generate a full-year 2021 revenue of about DKK 12 billion (USD 2 billion, EUR 1.6 billion), and an EBITDA in the range of DKK 950 to DKK 1,020 million (USD 155.3 to USD 166.8 million, EUR 127.8 to EUR 137.2 million).
In February this year, the group signed a partnership agreement with Vietnamese shrimp farming company Viet-UC, which saw BioMar become a co-owner and take operational charge of Viet-UC’s feed factory. While the process of defining the partnership has been rendered difficult by persistent travel restrictions, the process of obtaining the necessary regulatory approvals is progressing to plan and is expected to be concluded in the second-quarter, BioMar said.
Photo courtesy of BioMar
