Sales volume and operating profit increase for the fish feed supplier.
BioMar reports a three percent increase year-on-year in the third quarter on Thursday. This boosts revenue by ten per cent to EUR 338 million from EUR 308 million in the third quarter last year. At the same time, EBITDA improved by 28 percent.
Increased internal efficiency combined with the development of advanced feed solutions are now increasing earnings through the recovery of lost market shares and contracts in the Norwegian market. At the same time, the other salmon markets, the shrimp segment and the EMEA division report a significant increase in volume sold and satisfactory profitability, BioMar writes in a press release.
This development means that BioMar raises EBITDA guidance, for the second time this year, to EUR 127-157 million from earlier 116-124.
“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. We have seen a 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,” explains Carlos Diaz, CEO of BioMar Group.
The consolidated BioMar result so far this year is significantly ahead of 2018, while the associated companies in China and Turkey delivered results below the level in 2018. The volumes sold in China went down due to increased market competition in one of the provinces, while the volumes sold in Turkey went down due to challenging macroeconomic conditions. However, BioMar remains positive about the outlook for these two important aquaculture markets.
“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 a proof that we are on the right track driving a healthy business,” concludes Carlos Diaz.