BioMar closes 2020 with solid results
BioMar Group reports revenue and earnings for 2020 slightly higher than 2019. The positive development has mainly been driven by the salmon division, where higher volumes secured a year in line with expectations.
BioMar left 2020 with a significant growth in volume in the salmon market compared to 2019 with a 7% increase in salmon feed volumes. New product offerings, an agile adaption to the changing market situation and a new production facility in Australia, laid the foundation for a strong development of the salmon business. However, pressure on margins and exchange rates limited the impact on the bottom-line and kept both revenue and results in line with 2019.
“We are leaving 2020 with a very strong position in the Salmon feed markets. The pandemic has demanded agile collaboration with our customers adapting feeding strategies and product solutions. We have been able to be close to the markets and took fast decisions across the globe despite travel restrictions and lockdowns,” explains Carlos Diaz, CEO BioMar Group.
In the European markets outside salmon and in the shrimp feed markets, our customers and therefore also BioMar has during the year been impacted significantly by a challenged HORECA sector, export restrictions and the damages of the Gloria storm raging the Mediterranean area, eliminating a large farming capacity especially in Spain.
“Despite the circumstances, we have realised an acceptable year in our EMEA division as well as in our shrimp feed producing countries. We have been able to keep our people safe and in good health, and we have continued to develop our products and grow the business. Since last spring, we have opened factories in Australia and in China, where now we have two production units, and we have launched a new extruded feed production line in Ecuador. In 2021 we have signed a deal to acquire a feed business unit in Vietnam positioning us even stronger in the shrimp segment. Looking back at 2020, it has been both challenging and rewarding”, continues Carlos Diaz.
BioMar reported a total growth in revenue of 4%, while full-year EBITDA increased from DKK 966 million in 2019 to DKK 972 million in 2020. The full-year result was driven positively by increased sales volume and cost savings, while partially offset by unfavorable exchange rates and extraordinary cost related to the pandemic.
“Navigating through this crisis has not been a cheap task. We have saved money on travelling while taking significant costs to keep the employees safe and support our local communities, but to us people always come first. We would not have been where we are today without employees around the world believing in our shared purpose and being willing to innovate and take risks to navigate through the crisis”, concludes Carlos Diaz.