Norwegian biotech and krill-harvesting company Aker BioMarine saw a boost in revenue and profit in Q1 2024, seeing early benefits from a restructuring the company implemented late in 2023.
Aker achieved revenues of USD 78.3 million (EUR 73.1 million) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 15.2 million (EUR 14.2 million) during the period, compared with USD 69.1 million (EUR 64.5 million) and USD 6 million (EUR 5.6 million), respectively, in the corresponding period of 2023.
These results followed the company’s restructuring, through which it reorganized its former Ingredients and Brands segments into four new segments: Feed Ingredients, Human Health Ingredients, Consumer Health Products, and Emerging Businesses.
In a statement accompanying the company’s results, Aker BioMarine CEO Matts Johansen said he had been impressed by “the dedication and skill” shown by staff during the restructuring phase.
“The new operational structure is proving its merit, with each business unit displaying sharper operational and strategic focus,” he said. “The company continues to demonstrate strong growth, evidenced by a 13 percent increase in revenues year over year. Sales in both the Feed Ingredients and Human Health Ingredients segments continue to develop well, while the Consumer Health Products segment had a bit of a softer quarter.”
For the quarter, sales in Aker’s new Feed Ingredients segment totaled USD 30.8 million (EUR 28.7 million), up 41 percent on Q1 2023. Sales of Aker’s krill products line Qrill Aqua increased 33 percent compared to the same quarter last year, driven by higher volumes and prices, while its Qrill Pet sales increased 160 percent, following a large new contract the company signed on prices at or above the same period it achieved in 2023.
The company’s offshore krill production volume amounted to 21,306 metric tons (MT) in the quarter, compared to 19,852 MT in the same quarter last year, and its year-to-date production on 25 April was 10 percent above the same period last year. On the back of that growth, the segment reported an adjusted EBITDA of USD 11.2 million (EUR 10.5 million) in the quarter, up from USD 2.2 million (EUR 2.1 million) year over year.
In its new Human Health Ingredients segment, sales increased 13 percent year over year to USD 22.4 million (EUR 20.9 million) in the quarter, with sales of Superba krill oil up 11 percent compared to the same quarter last year. The segment also reported an adjusted EBITDA of USD 9 million (EUR 8.4 million) in the quarter, up from USD 6 million (EUR 5.6 million) in the corresponding period of last year.
Elsewhere in the segment, Aker BioMarine launched its algae oil brand FloraMarine in March 2024, the effects of which were not yet felt in its Q1 2024 results.
For its Consumer Health Products segment, Aker BioMarine reported private-label partner Lang Pharma Nutrition had sales of USD 26.1 million (EUR 24.4 million), down 19 percent compared to Q1 2023, noting the quarter featured significant promotional activity that drove sales, but that its gross margin remains on par with same period last year at 23 percent. The segment reported an adjusted EBITDA of USD 1.8 million (EUR 1.7 million) in the quarter, down from USD 2.8 million (EUR 2.6 million) year over year.
Aker's Emerging Businesses segment had USD 3.1 million (EUR 2.9 million) in gross sales from Kori krill oil, down 31 percent compared to Q1 2023. The segment reported adjusted EBITDA losses of USD 1.1 million (EUR 1 million) in the quarter, up from a USD 3.7 million (EUR 3.5 million) loss in the same period last year.
However, its online sales via Amazon continue to grow, up 50 percent compared to Q1 2023. One of the segment’s brands – Kori krill oil – has also gained distribution with Costco Japan, and a strategic partnership agreement that will see it license out the Kori brand to one of Aker BioMarine’s largest customers in China.
Aker said it its Feed Ingredients segment, and its Qrill Aqua brand in particular, is likely to enjoy higher prices during the coming decade due to the aquaculture industry increasing its inclusion of marine ingredients in aquafeed.
Aker predicted its krill production will exceed 60,000 MT in coming years. It said it may invest in a new krill-fishing vessel to accelerate that growth.
Aker also confirmed it won the 2024 Norwegian Export Prize, given for its targeted, sustainable, and innovative business strategy.
