BioMar reports solid Q3 despite lower sales volumes
The company reports an increase in revenue by 41%, while earnings recovered significantly compared to Q3 2021.
Driven by a solid sale in the feed business and strong results in the newly acquired AQ1, BioMar earnings increased by 45% compared to Q3 2021. The revenue increase was mainly driven by higher raw materials prices and currency development. Revenue for the year to date amounted to DKK 12,887 million (USD 1,8 million), compared with DKK 9,256 million (USD 1,30 million) in the same 2021 period.
“Coping with the consequences of the COVID-19 pandemic, followed by the war in Ukraine and our exit from Russia, our organization 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, BioMar’s CEO.
Additionally, earnings continue to be impacted by the missing sales from Russia and by 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 (USD 134.33-139.92 million) from the DKK 910-960 million range (USD 127.33-134.33).
Looking at the non-consolidated business such as the JV feed businesses in Turkey and China, and associated companies, BioMar continues to demonstrate a positive development reaching DKK 49 million (USD 6.86 million) shares 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, despite challenges, we 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 organization and in our commercial relationships to innovate for new ways of doing business and developing products,” said Diaz.