Balchem Corp (BCPC, Financial) announced its financial results for the fourth quarter and full year ending December 31, 2024, on February 21, 2025. The company reported record net sales of $240.0 million for the fourth quarter, a 4.9% increase from the previous year, and net earnings of $33.6 million, marking a 26% rise. The adjusted EBITDA reached $62.8 million, up 13.4% year-over-year, with a free cash flow of $39.8 million. For the full year, Balchem achieved record net sales of $953.7 million and adjusted EBITDA of $250.3 million, reflecting growth across its Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products segments.
Positive Highlights
- Record fourth-quarter net sales of $240.0 million, a 4.9% increase from the prior year.
- GAAP net earnings rose by 26% to $33.6 million.
- Adjusted EBITDA increased by 13.4% to $62.8 million.
- Full-year net sales reached a record $953.7 million, up 3.4% from the previous year.
- Strong free cash flow of $39.8 million for the quarter.
Negative Highlights
- Operating expenses increased by $2.2 million due to higher transaction costs and compensation-related expenses.
- Effective tax rate increased to 24.5% from 19.9% in the previous year.
Financial Analyst Perspective
Balchem Corp's financial performance in 2024 demonstrates robust growth and operational efficiency. The company's ability to achieve record sales and earnings across all segments highlights its strategic focus and market demand for its products. The increase in adjusted EBITDA and free cash flow indicates strong cash generation capabilities, which are crucial for sustaining growth and shareholder returns. However, the rise in operating expenses and effective tax rate could be areas to monitor in future quarters.
Market Research Analyst Perspective
Balchem Corp's impressive financial results reflect its strong market position in the Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products sectors. The company's growth in net sales and earnings suggests a successful execution of its strategic initiatives and a positive market reception of its offerings. The continued investment in product innovation and market expansion will likely support Balchem's competitive edge and long-term growth prospects.
Frequently Asked Questions
Q: What were Balchem Corp's net sales for the fourth quarter of 2024?
A: Balchem Corp reported net sales of $240.0 million for the fourth quarter of 2024.
Q: How much did Balchem Corp's adjusted EBITDA increase in the fourth quarter?
A: The adjusted EBITDA increased by 13.4% to $62.8 million in the fourth quarter of 2024.
Q: What was the effective tax rate for Balchem Corp in the fourth quarter of 2024?
A: The effective tax rate for the fourth quarter of 2024 was 24.5%.
Q: How did Balchem Corp's full-year net sales for 2024 compare to the previous year?
A: Balchem Corp's full-year net sales for 2024 were $953.7 million, a 3.4% increase compared to the previous year.
Read the original press release here.
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