BioMar holds steady growth despite pandemic volatility
Both volumes sold and revenue went up in Q2 compared to 2020 while margins were challenged by a significant increase in raw material prices and logistic costs.
BioMar continues the steady growth and delivers solid results despite the pandemic. Both volumes sold and revenue went up in Q2 compared to 2020 while margins were challenged by a significant increase in raw material prices and logistic costs.
BioMar reports an increase in volumes sold in all divisions except salmon. The increase of volumes sold in Europe and Australia was counterbalanced by a decrease in volumes sold in Chile due to several factors including the reduced biomass, the algae bloom, and a local strike in one of the three production facilities. The increase in total volumes sold was 4% compared to Q2 2020.
“We have managed to keep a good position in the markets despite intense competition for volumes and a situation where we have not been able to fully offset the steep increase in raw material prices. Our development of new product solutions and the close collaboration with our customers during this pandemic period of volatility, have been important drivers of our expansion in customer portfolio and volumes,” explained Carlos Díaz, CEO BioMar Group.
The global trend of recovery from the pandemic is seen across species and in Latin America. The shrimp feed business reports improved conditions in the market recovering from the consequences of export restrictions. The combination of increasing biomass and a new mix of technical services, product solutions and value chain-driven collaboration with customers, has placed BioMar in a solid position in the market.
“We can clearly see that the global aquaculture industry has started to recover from the closing of the HORECA sector, the export and logistic challenges, and the Mediterranean storm Gloria which in 2020 destroyed a significant part of the net cages in the area. However, we are challenged by raw material prices increasing beyond any expectations. This global development in raw material prices and freight costs puts pressure on our margins and earnings. We face a very tough scenario for global raw material development, but I am confident we will be able to deliver solid results for this year,” concluded Díaz.