BioMar grows earnings despite logistics, cost challenges
Global aquafeed manufacturer BioMar reported increasing earning for the third quarter of this year despite a number of crucial challenges.
The company’s Q3 2021 report indicate that volume sales grew by 11 per cent year-on-year and reported revenue was up by 17 per cent. However, the bottom-line results are affected by global increases in raw material prices, logistic costs, and energy prices, according from a press release from the Denmark-headquartered producer.
The EBITDA for the quarter fell from DKK 326 million (USD $49.5 million) in Q3 2020 to DKK 282 million ($42.8 million) in Q3 2021 for the consolidated companies, while the non-consolidated joint ventures and associates are recognized in the Q3 2021 consolidated financial statements at a DKK 36 million ($5.4 million) share of profit after tax, compared with a DKK 44 million ($6.6 million) share of loss in the Q3 2020 period.
“Looking at the world around us, we are now in the middle of a situation, that is completely changing factors of our industry’s cost structure in a way and at a speed that we have not seen before,” said Carlos Diaz, chief executive officer of BioMar Group. “Through the pandemic, it has been difficult to conduct business, but our business model is founded upon a belief in local agility and empowerment of our business units which has enabled us to find strong commercial paths together with our customers.”
The executive noted that “the game is changing completely” and that the aquafeed industry “needs to find a solutions on how to overcome this volatility.”
Diaz also expressed concerns around logistics.
“The current situation of high prices of raw materials, freight and energy is unfortunately not expected to improve over the next few months and the general supply situation is expected to remain challenging. While it will affect our earnings in the short term, we will make it a priority to be able to ship goods continually to customers worldwide as we play an important role in the supply chain,” Diaz said.