Feed group BioMar posts record earnings for Q1

Feed business BioMar’s focus on adding value appears to be paying off, with increased earnings for the first quarter of 2024 despite a lower volume of sales, year on year.

Including all the feed companies in the BioMar group, the company recorded an EBITDA for Q1 of more than DKK 310m (£35.5m), compared with DKK 117m (£13.4m) for Q1  2023.

Volumes were down 8% to 262,000 tonnes, and revenue was over DKK 3.24bn (£371.4m), 30% lower than Q1 2023.

BioMar said strong growth in the shrimp feed segment had offset a lower sales volume in the salmon segment. Lower raw material prices and exchange rates also contributed to lower revenue for the quarter.

Carlos Diaz, BioMar Group CEO (pictured), commented: “After a strong 2023, we have managed to keep momentum and deliver a very strong Q1. All divisions have contributed with results above the expected, which has added up to the overall record for the group.

“I am proud of the commitment from our employees across the world, and very proud to experience the positive outcome of our increased focus on sustainability as well as our commercial excellence projects.”

He added: “We can see that we are moving the needle significantly on sustainability. With our Blue Impact product portfolio and the customer collaborations around science-driven reductions in scope 3 [greenhouse gas] emissions, we have positioned us as a strong partner, driving value for both our customers and their customers.”

BioMar has softened its full-year 2024 revenue forecast for the consolidated companies to DKK 17.0bn-18.0bn (£1.9bn-£2bn) from the previous DKK 17.5bn-18.5bn. At the same time, however, the company has raised its earnings forecast for the consolidated companies to EBITDA in the DKK 1,270m-1,350m range (£145.4m-£154.6m) from the previous DKK 1,210m-1,290m.

The associated companies and joint ventures are expected to contribute to the full-year results with around DKK 60m (£6.9m) in profit after tax.