BioMar growth exceeds expectations
March 9 2018
In 2017, BioMar Group delivered on the growth aspirations. The financial results for the year reveal a significant increase in revenue as well as solid EBIT exceeding expectations. Driving factors have been expansions into new markets and an increased focus on innovation and sustainability.
During the year 2017, BioMar emphasized that its strategic ambitions are coming alive. The company delivered increased revenue of 12% compared to 2016, mainly boosted by a significant capacity expansion in Norway and the acquisition of the shrimp feed producer Alimentsa in Ecuador.
"I believe that our strategic decision to safeguard local agility has proven to be a strong competitive advantage across our markets. Together with the customers, we keep improving growth performance and animal health, at the same time moving even beyond, embracing important trends within the consumer markets. In parallel, we have continued our meticulous focus expanding and optimizing global innovation capacity", explains Carlos Diaz, CEO BioMar Group:
"It has been a busy, but encouraging year. We accomplished our first full year with operations in Turkey and China, and we completed the acquisition of Alimentsa in Ecuador to complement our presence in the shrimp segment, together with our factory in Costa Rica. On top of this we initiated our factory project in Australia, started the biggest fish feed line in the world and began operations of our new LNG vessel in Norway, reinforcing our state-of-the-art technology and fleet. And finally we started the construction of our trial facility in Ecuador to supplement the ATC network together with lots of interesting product concepts launched in our different markets. Everywhere I have seen an amazing dedication to innovating aquaculture."
In total volumes sold did go up by 20% compared to 2016. The salmon markets counted for the largest increase in volumes, supported by expanded production capacity, increased global biomass and favorable biological conditions. The other markets followed the upward trend in volumes and revenue with the newly established business in Turkey proving solid foothold in the market. BioMar Group closed the year with an EBITDA of DKK 712 million and an EBIT of DKK 559 million slight decreasing from 2016. However the results from the main activities increased slightly and exceeded the recent guidance in Q3.
"I am particularly happy to see that we have reached the expected volumes Turkey, China and Ecuador. In our strategy, we outlined an ambition for growth with sustainable profits and we have now taken important steps delivering on the promise. Furthermore we have managed to bring our knowledge and experience to new aquaculture geographies, providing value to the local industries", continues Carlos Diaz.
BioMar expects to continue the positive development in 2018 across species and geographies:
"We expect another busy year, with increased competition in some markets, but we are confident in our strengths and the good base we have built", concludes Carlos Diaz.