BioMar closes 2020 with solid results
The positive resutls were mainly driven by the salmon division, where higher volumes met expectations.
March 5, 2021
BioMar Group reported revenue and earnings for 2020 slightly higher than 2019. The positive results were mainly driven by the salmon division, where higher volumes secured a year in line with expectations.
BioMar ended 2020 with significant growth in volume in the salmon market compared to 2019 with a 7% increase in salmon feed volumes. New product offerings, an agile adaption to the changing market situation and a new production facility in Australia laid the foundation for a strong development of the salmon business. However, pressure on margins and exchange rates limited the impact on the bottom line and kept both revenue and results in line with 2019.
“We are leaving 2020 with a very strong position in the salmon feed markets. The pandemic has demanded agile collaboration with our customers adapting feeding strategies and product solutions. We have been able to be close to the markets and took fast decisions across the globe despite travel restrictions and lockdowns,” explained Carlos Díaz, CEO BioMar Group.
In 2020 in the European markets outside salmon and in the shrimp feed markets, customers and BioMar were impacted significantly by a challenged HORECA sector, export restrictions and the damages of the Gloria storm raging the Mediterranean area, eliminating a large farming capacity especially in Spain.
“Despite the circumstances, we have realized an acceptable year in our EMEA division as well as in our shrimp feed producing countries. We have been able to keep our people safe and in good health, and we have continued to develop our products and grow the business. Since last spring, we have opened factories in Australia and in China, where now we have two production units, and we launched a new extruded feed production line in Ecuador. In 2021, we signed a deal to acquire a feed business unit in Vietnam positioning us even stronger in the shrimp segment. Looking back at 2020, it was both challenging and rewarding,” said Díaz.
BioMar reported a total growth in revenue of 4%, while full-year EBITDA increased from DKK 966 million ($155 million) in 2019 to DKK 972 million ($156 million) in 2020. The full-year result was driven positively by increased sales volume and cost savings, while partially offset by unfavorable exchange rates and extraordinary costs related to the pandemic.
“Navigating through this crisis has not been a cheap task. We have saved money on traveling while taking significant costs to keep the employees safe and support our local communities, but to us, people always come first. We would not have been where we are today without employees around the world believing in our shared purpose and being willing to innovate and take risks to navigate through the crisis,” concluded Díaz.