Solid Q3 for BioMar Group
Despite lower sales volumes, BioMar reports an increase in revenue by 41%, while earnings recovered significantly compared to Q3 2021. The company is now raising earnings guidance for the full year to the range of DKK 960-1,000 million.
Driven by a solid sale in the feed business combined strong results in the newly acquired AQ1, BioMar earnings went up by 45% compared to Q3 2021. The significant increase in revenue was mainly driven by higher market prices on raw material and to some extend currency development. Revenue for the year to date amounted to DKK 12,887 million, compared with DKK 9,256 million in the same period 2021.
“Coping with the consequences of pandemic, followed by the war in Ukraine and our exit from Russia, our organisation has focused on improving commercial and operational excellence. Developing our processes and creating value from data analytics is more important than ever to counteract the inflationary effects on our costs. We have been engaged in creating efficiencies in our supply chain, while working together with our customers designing new solutions for existing and new commercial relationships. We are still not at a normal profit level, but we are moving in the right direction”, comments Carlos Diaz CEO BioMar Group.
Earnings continue to be impacted by the missing sales from Russia and of replacing raw materials from Russian/Belarus. Based on the business results in Q3 and the improved prospects for the rest of the year, BioMar has now raised its earnings guidance for 2022 to the DKK 960-1,000 million range from the DKK 910-960 million range.