BioMar achieves record-breaking earnings in 2023, bolstered by salmon division improvements

DENMARK- Danish aqua feed manufacturer BioMar has reported a stellar performance in the fourth quarter of 2023, propelling the company to achieve record-high full-year earnings before interest, taxes, depreciation, and amortization (EBITDA). 

The exceptional financial results, driven by robust performance across various segments, notably the salmon division, exceeded expectations, signaling a promising trajectory for the company’s future growth.

BioMar revealed an EBITDA of DKK 397 million (US$58 million) for the fourth quarter, contributing to overall earnings of DKK 1.25 billion for the entirety of 2023. Encouragingly, the company anticipates the momentum of strong financial performance to persist into the current fiscal year.

Despite stable volumes compared to the previous year, BioMar CEO Carlos Diaz emphasized the company’s strategic focus on fostering enduring partnerships with core customers, prioritizing long-term collaboration over short-term volume expansion.

Diaz also underscored the increasing importance of forging alliances with suppliers of novel raw materials, reflecting BioMar’s commitment to innovation and sustainability in its supply chain.

The annual report from BioMar’s parent company, Schouw and Co, highlighted the salmon division’s remarkable performance, despite a decline in volume sales in the fourth quarter attributed to reduced contract positions in Norway and Chile. 

However, the division’s earnings surged significantly, buoyed by a diverse product portfolio and a steadfast commitment to commercial excellence.

In contrast, the EMEA division experienced slightly lower volume sales and revenue compared to the fourth quarter of 2022, primarily attributable to market challenges in the Mediterranean region. 

Similarly, the LatAm business witnessed substantial improvements in both volume sales and revenue, driven by stronger contract positions in a market grappling with low prices on farmed shrimp.

BioMar’s strategic initiatives extend beyond financial performance, as evidenced by its partnership with Icelandic business Síldarvinnslan to establish feed production in Iceland. 

While BioMar’s efforts in Iceland have faced challenges, the company remains committed to exploring alternative opportunities to bolster its presence in the burgeoning aquaculture market of Iceland.

As BioMar continues to navigate evolving market dynamics and pursue sustainable growth strategies, the company’s resilience and adaptability underscore its position as a leader in the global aqua feed industry. 

With a steadfast commitment to innovation, strategic partnerships, and responsible business practices, BioMar remains poised to capitalize on emerging opportunities and drive value for its stakeholders in the years ahead.

For all the latest grains industry news from Africa, the Middle East, and the World, subscribe to our weekly NEWSLETTERS, follow us on LinkedIn, and subscribe to our YouTube channel.