BioMar reported a strong performance in the first quarter of the year with record-high volumes for the quarter, combined with solid earnings.
Year-on-year, BioMar increased volumes by 12%, driven by a positive development across all segments. While salmon feed volumes increased by 7%, selected species went up by 13% and shrimp reached an increase of 24% in feed volumes, mainly driven by the business in Ecuador.
"I am pleased to conclude that every segment experienced growth in both volume and revenue. In 2024, we intensified our efforts on product mix and commercial excellence, prioritizing the creation of shared value with our customers over sheer volume. We are now leveraging this foundation to foster further business growth,” stated Carlos Diaz, CEO of BioMar Group.
“While the feed business segments are continuing the strong momentum, we are starting to see the expected positive development in the Tech segment, where negative earnings in Q1 2024 have been turned into a positive contribution of EBITDA DKK 13 million (USD 13 million) in Q1 2025, based on a revenue which has more than doubled. We see that the shrimp farmers are looking for investments in technology that can increase production efficiency and improve total economic performance,” Diaz continued.
Overall, BioMar reported a strong EBITDA for Q1 2025 at DKK 206 million (USD 31.2 million) and at an expected level, adjusted for the positive effects of a special nature in 2024, primarily connected to the salmon segment. Revenue grew by 5% as lower raw material prices impacted sales prices.
“On top of the positive results from the consolidated companies, we witness a solid development in our joint-venture feed companies. In China, we improved both revenue and earnings compared to 2024, while in Turkey, we have used our solid grip in the market to take a conscious decision limiting our credit risk, which naturally has impacted the results,” continued Diaz.
In April, BioMar acquired 100% of the feed trial innovation center LetSea, which is an important milestone accelerating the development of BioMar's capabilities for delivering research-driven innovations within salmon feed.
“The industry will continue to face challenges going forward, and there will be a need for new innovative feed solutions. It is extremely important to have the capacity to fast-track trials and documentation of grower feed concepts and products in facilities with real seawater conditions. We are not only striving to deliver next-generation functional feed and waterborne feeding, but also include novel raw materials, which are moving the needle on sustainability,” concludes Carlos Diaz.
The investigation into the potential value creation for the existing shareholders of Schouw & Co., through a separate listing of BioMar, continued in Q1 2025, and it is likely that a banking syndicate will be established in the near future as a next step in the preparations towards a separate listing of BioMar.
BioMar expects to generate full-year 2025 revenue of about DKK 16.0-17.0 billion (USD 2.4 billion). Given the current outlook, the company expects 2025 EBITDA in the range of DKK 1,470-1,570 million (USD 223-238 million).
