By adding all the feed companies in the group managed by BioMar, including joint ventures, BioMar ends with a record first quarter of EBITDA of more than DKK 310 million (USD 44.4 million). This record start of the year has been driven by higher margins as a consequence of a better product mix and commercial excellence efforts.
Across the divisions, BioMar showed remarkable results in Q1. While margins increased due to changes in product portfolio mix, BioMar realized an 8% lower sales volume in Q1 2024 compared to Q1 2023. However, a strong growth in the shrimp feed segment could partly offset a lower sales volume in the salmon feed segment.
The lower volumes are explained due to biological issues in different markets combined with an increased focus on long-term customer collaboration, hence moving the focus from market share to value creation. The lower revenue is furthermore explained by lower raw material prices and exchange rates.
“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 outcomes of our increased focus on sustainability as well as our commercial excellence projects,” explained Carlos Diaz, CEO BioMar Group.
“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 emissions, we have positioned ourselves as a strong partner, driving value for both our customer and their customers”, continued Diaz.
BioMar softens its full-year 2024 revenue forecast for the consolidated companies to DKK 17.0-18.0 billion (USD 2.4-2.6 billion) from previously DKK 17.5-18.5 billion. At the same time, however, the company raises its earnings forecast for the consolidated companies to EBITDA in the DKK 1,270-1,350 million (USD 181-193 million) range from previously DKK 1,210-1,290 million. The associated companies and joint ventures are expected to contribute to the full-year results with around DKK 60 million for the share of profit after tax.
