BioMar reported a three percent year-on-year increase in volumes sold in the third quarter of 2019, driving the revenue up by ten percent to DKK 3,404 million from DKK 3,104 million in Q3 2018. EBITDA improved by 28% when adjusting for the impact of IFRS 16.
Earlier this year the company announced a change in the Norwegian organizational set-up and operating model. The obtained internal efficiencies combined with the development of advanced feed solutions is now driving up earnings through recovery of lost volumes and gaining important contracts in the Norwegian market. Other salmon units, the shrimp segment and the EMEA division are all reporting significant increases in volumes sold and satisfactory profitability. This development positions BioMar to raise the EBITDA guidance for the second time in the year to DKK 900-930 million from previously DKK 870-930.
“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 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,” explained Carlos Diaz, CEO in BioMar Group.
The consolidated YTD result of BioMar Group is significantly ahead of 2018, while the associated companies in China and Turkey delivered results below the level of 2018. Volumes sold in China declined due to a more competitive market in one of the provinces, while volumes sold in Turkey declined due to challenging macroeconomic conditions. However, BioMar remains positive about the prospects for these two important aquaculture markets.
“In Q4 2019 and Q1 2020 we are, as previously 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 proof that we are on the right track driving a healthy business,” concluded Carlos Diaz.