BioMar improves earnings in 2022 second quarter
The company is still being challenged by raw material prices, energy costs and the impact of suspending trade with Russia.
August 16, 2022
BioMar reported year-on-year volume sales up by 9% and an increase in revenue by 42%. Despite still being challenged by raw material prices, energy costs and the impact of suspending trade with Russia, the company’s earnings improved significantly, causing the company to raise guidance for the full year.
Driven by a strong sale in Q2, BioMar earnings went up by 24% compared to Q2 2021. The significant increase in revenue in Q2 was driven by higher sales volumes, raw material prices and, to some extent, currency rate development.
“I am proud to announce the strong growth trend in sales volumes being confirmed. Production costs continue to be a challenge, but together with our customers, we have been able to find commercially viable solutions, safeguarding the strength of the value chain,” said Carlos Díaz, CEO BioMar Group.
Earnings continue to be impacted by the delay in passing on the sharp increase in raw materials prices, logistics and energy as well as by the cost of replacing raw materials from Russia/Belarus. “It is heart-warming to see that several of our customers have drawn the same line in the sand as BioMar, despite the short-term business impact. BioMar is a purpose-driven company, and to me, business ethics and our ability to protect our customer’s brands must always come first. It is still surprising and disappointing to witness some of our main global competitors continuing to trade with Russia, both selling feed and buying raw materials, in a way taking advantage of the situation. We still strongly believe we made the right decision despite the financial effects,” explained Díaz.
Based on the strong business activity in Q2 and the improved prospects for the rest of the year, BioMar has now raised its earnings guidance for 2022 by DKK 55 million (USD 7.5 million) to EBITDA in the DKK 910-960 million (USD 124-130 million) range after recognition of provisions for losses on assets related to Russia.