Lower volumes are explained due to biological issues in different markets combined with an increased focus on long-term customer collaboration.
Danish feed giant BioMar has announced a record-breaking first quarter for 2024, achieving an EBITDA of more than DKK 310 million ($44 million) across all its feed companies, including joint ventures.
The company attributes this success to improved margins resulting from a better product mix and enhanced commercial efforts.
Despite an 8% drop in sales volume compared to the first quarter of 2023, BioMar has seen significant growth in the shrimp feed segment, which helped offset declines in the volumes of sales in the salmon feed segment.
The lower volumes are explained due to biological issues in different markets combined with an increased focus on long-term customer collaboration, hence moving focus from market share to value creation, according to a release from the company.
The lower revenue is furthermore explained by lower raw material prices and exchange rates.
“After a strong 2023, we have managed to keep momentum and deliver a very strong Q1. All divisions have contributed with results above the expected, which has added up to the overall record for the group. I am proud of the commitment from our employees across the world, and very proud to experience the positive outcome of our increased focus on sustainability as well as our commercial excellence projects”, said CEO Carlos Diaz.
Further emphasizing their sustainability efforts, Diaz noted, “We can see that we are moving the needle significantly on sustainability. With our Blue Impact product portfolio and the customer collaborations around science-driven reductions in scope 3 emissions, we have positioned ourselves as a strong partner, driving value for both our customers and their customers.”
Looking ahead, BioMar has adjusted its full-year 2024 revenue forecast to DKK 17-18 billion ($2.38-2.52 billion), slightly down from the previous forecast. However, the company raised its EBITDA expectations to DKK 1,270-1,350 million ($177-189 million), up from the initial forecast. The associated companies and joint ventures are projected to add approximately DKK 60 million ($8.4 million) to the after-tax profits for the year.
