BioMar CEO lashes out at Cargill’s Russian activity: “Surprising and disappointing to witness”

Aslak Berge

Carlos Diaz uses presentation of results to settle a disagreement with a feed competitor.

Driven by strong sales in the second quarter, BioMar increased revenue by 24 percent compared to the second quarter of 2021. Revenue growth was driven by higher sales volume, commodity prices and to some extent exchange rate developments.

“I am proud to announce that the strong growth trend in sales volume is confirmed. Production costs continue to be a challenge, but together with our customers we have been able to find commercially viable solutions and safeguard the strength of the value chain,” Carlos Diaz, CEO of BioMar Group, said in a press release.

Read also: BioMar and Síldarvinnslan to build a net-zero aquafeed facility in Iceland

Increased costs
Earnings continue to be affected by the delay in passing on the sharp increase in costs related to raw materials,
logistics and energy, as well as the costs of replacing raw materials from Russia and Belarus:

“It is heartwarming to see that several of our customers have drawn the same line in the sand as BioMar, despite the short-term business effect. BioMar is a purpose-driven company, and for me, business ethics and our ability to protect our customers’ brands must always come first. It remains surprising and disappointing to witness that some of our main global competitors continue to trade with Russia, both selling feed and buying raw materials, in a way that exploits the situation. We still strongly believe that we made the right decision despite the financial effects,” Diaz explained.

Hever guiding
Diaz’s attack is aimed particularly at competitor Cargill, which is the only one in the fish feed oligopoly that still trades with Russia. Cargill refused to comment on Diaz’s comments.

Based on the strong business activity in the second quarter and the improved outlook for the rest of the year, BioMar has now raised its earnings guidance for 2022 by DKK 55 million (€7.4 million) to EBITDA in the range of DKK 910-960 million (€122.4-129 million) after taking into account provisions for losses on assets related to Russia.

“Høydal” transports feed for BioMar. The owner is NSK Shipping. Photo: Steve Hernes.

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