SOLID THIRD QUARTER PERFORMANCE FOR BIOMAR
Solid third quarter performance improving revenue and earnings. BioMar is delivering solid results across the globe. A strong financial result in Q3 brings the group to raise the overall guidance for the year once again.
BioMar reported a 3% year-on-year increase in volumes sold in the third quarter of 2019, driving the revenue up by 10% 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.
BioMar announced earlier this year 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, gaining important contracts in the Norwegian market. At the same time the other salmon units, the shrimp segment as well as the EMEA division are reporting significant increase in volumes sold and satisfactory profitability. This development brings BioMar in shape 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”, explains 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 previous 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”, concludes Carlos Diaz.