BioMar bounces back, despite Russian business embargo

The Fish Site
by The Fish Site
15 November 2022, at 11:00am

BioMar has reported an increase in revenue, despite lower sales of aquafeeds and its ongoing policy to no longer do business in, or with, Russia and Belarus.

Man standing by the coast
Carlos Diaz, CEO of Biomar Group

The company’s Q3 report shows that revenue by 41 percent, while earnings recovered significantly compared to Q3 2021.

The company is now raising earnings guidance for the full year to the range of DKK 960 million to 1 billion. Driven by a solid sale in the feed business, combined strong results in the newly acquired AQ1 Systems - the world’s leading producer of acoustic feeding technology for the shrimp farming industry - BioMar earnings went up by 45 percent compared to Q3 2021. The significant increase in revenue was mainly driven by higher market prices on raw material and to some extend currency development. Revenue for the year to date amounted to DKK 12.887 billion, compared with DKK 9.256 billion in the same period 2021.

“Coping with the consequences of pandemic, followed by the war in Ukraine and our exit from Russia, our organisation has focused on improving commercial and operational excellence. Developing our processes and creating value from data analytics is more important than ever to counteract the inflationary effects on our costs. We have been engaged in creating efficiencies in our supply chain, while working together with our customers designing new solutions for existing and new commercial relationships. We are still not at a normal profit level, but we are moving in the right direction,” said Carlos Diaz, CEO of BioMar Group in a press release.

Earnings continue to be impacted by the missing sales from Russia and of replacing raw materials from Russia and Belarus. Based on the business results in Q3 and the improved prospects for the rest of the year, BioMar has now raised its earnings guidance for 2022 to the DKK 960-1,000 million range from the DKK 910- 960 million range.

Looking at the non-consolidated business, which comprises the JV feed businesses in Turkey and China combined with associated companies, BioMar continues to demonstrate a positive development reaching DKK 49 million share of profit after tax in Q3 compared to DKK 36 million in Q3 2021, with good prospects toward the end of 2022.

“The world around us is still very volatile, but I strongly believe we will conclude 2022 on a positive note. It has been a year where we despite challenges have managed to expand our business with the world leading company for intelligent feeding, AQ1, and are progressing with business development plans in different geographies. We are still challenged by lower volumes in some countries and a volatile market for raw materials and energy, but we have seen an impressive ability in our own organization and in our commercial relationships to innovate for new ways of doing business and developing products,” concluded Diaz.