New markets support BioMar in Q1
First quarter of 2018 underlines, that BioMar Group has entered into new markets and species creating viable business growth. The financial results are supported by solid yield from the new investments while weather conditions and a competitive scenario hit BioMar’s Salmon Division.
Overall, BioMar Group delivered a lower result than expected in Q1 2018, but does not adjust the expectations to the full year results. Sales volume has increased compared to Q1 2017, which mainly reflects the contribution from the acquisition of Alimentsa in Ecuador. While BioMar, in the salmon markets, has been challenged by lower volumes and a continuous competitive situation, market share stays at the level obtained in 2017 keeping BioMar truly on par with main competitors.
“We see the achieved market share in 2017 at the salmon markets and especially in Norway as a situation which the market will need to get used to. It has been a tough competitive scenario with pressure on margins, but we expect it to improve during the year. In Q1 we concluded negotiations with key customers in UK and we are confident that 2018 will turn out to be another good year, where BioMar will push innovations to the market setting the agenda in the industry”, tells Carlos Diaz, CEO BioMar Group.
|All sums in MIO. DKK||Q1 2018||Q1 2017|
|Volume (1,000 t.)||223||205|
Revenue decreased compared to Q1 2017, although sales volume increased in the same period, which mainly relates to exchange rates development, the competitive landscape in the salmon markets and changes in product mix.
While the core markets of BioMar have experienced a challenging Q1 due to tough weather conditions hitting mainly Europe, the new markets have been flourishing. Innovative products brought to the markets combined with what BioMar calls “anchored local agility” have enabled BioMar to create a good foothold within Ecuador as well as Turkey and China:
“We believe in creating anchored local agility in our new business unit as well as for our existing units. The philosophy is to make sure the local units can impact the global centers of excellence and tap into the global innovation resources within raw materials, sustainability, nutrition and health; at the same time being agile in the cooperation with the customers”, explains CEO, Carlos Diaz and continues:
“We expect to continue delivering solid results from the new business units in Ecuador and Turkey, and we will carry on building our position in China together with Tongwei Group. In Ecuador we are in the midst of a very promising integration of Alimentsa into our group and we expect to create further synergies during 2018. In Turkey, we have within a relatively short timeframe managed to become a significant feed supplier in one of Europe’s most important aquaculture regions. We have confidence that 2018 is going to be another good year, including our traditional markets comprised by our Salmon Division and EMEA Division”, concludes Carlos Diaz.