BioMar grew year-on-year volume sales by 8% in Q1, reporting a 34% increase in revenue, despite challenges posed by raw material prices, cost of energy, suspending trading with Russia.
The increase in revenue in Q1 was driven by higher sales volumes, raw material prices, and to some extend currency rate development. However, earnings were significant impacted by the sharp increase in raw material prices and energy cost not yet passed on to the customers.
Adding to the challenges following the Russian invasion of Ukraine, the earnings for Q1 dropped due to a legal dispute in Norway and changed accounting policies for IT investments. EBITDA for Q1 2022 came to DKK 54 million (€7.26 million), compared with DKK 133 million (€17.88 million) in Q1 2021.
“We took a tough decision following our values when we suspended trading with Russia. Our sale in Russia has for years been a very important part of our business, especially for the BioMar units in Denmark and Norway. At the same time, we have sourced some of our key raw materials in the area now affected by the conflict. However, our customers must be able to rely on us as a business partner with high ethical standards”, Carlos Diaz, CEO BioMar Group, stated.
“The decision will take its toll at BioMar, but we are a part of society, and we need to take responsibility. My only concern – and surprise – is that some of our international competitors have not taken the same position but is rather taking advantage of the situation. But even knowing this, we would have taken the same decision, since it is the right thing to do. This is not a food crisis for the people in Russia, but a humanitarian crisis for the people in Ukraine,” Diaz added.