Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Schouw & Co AS (FRA:5RF, Financial) reported a satisfying quarter despite challenging business conditions.
- BioMar's top line increased by 5% to DKK3.4 billion, with a 12% increase in volume.
- HydraSpecma delivered solid results with a 3% increase in top line and a 27% increase in EBITDA.
- Fibertex Personal Care performed better than expected, with a stable EBITDA and improved margins in Asia.
- The company maintained its full-year guidance, reflecting confidence in its strategic initiatives and market position.
Negative Points
- Overall EBITDA for Schouw & Co AS (FRA:5RF) was down 13% to DKK565 million.
- BioMar's EBITDA decreased by 24% due to a strong previous year and one-off impacts.
- GPV experienced a 5% decline in top line and an 8% drop in EBITDA due to soft demand.
- Borg Automotive faced fierce competition and cost increases, leading to a 32% drop in EBITDA.
- Fibertex Nonwovens saw a 26% decline in EBITDA due to a negative product mix effect.
Q & A Highlights
Q: Given BioMar's Q1 performance, should we expect it to hit the mid to lower end of the guidance range?
A: Jens Bjerg Soerensen, CEO, stated that they are confident in delivering within the range, likely around the midpoint, but there are opportunities for BioMar. The first quarter is a low season, yet they remain positive about BioMar's performance.
Q: How are raw material costs impacting profitability?
A: The CEO explained that raw material costs are not currently impacting profitability significantly. They have mechanisms in place, such as recipe optimization and long-term experience, to manage these costs effectively.
Q: Why are BioMar's margins down year-over-year, even after adjusting for one-offs?
A: The CEO attributed the margin decline to a mix of factors, including a higher volume in the salmon segment, which typically has lower margins, and less functional feed sales in the quarter. However, they are not concerned about the overall margin development.
Q: What is the outlook for BioMar's Tech segment, given its recent growth?
A: The CEO noted that the AQ1 division delivered a solid Q1, with major shrimp customers showing interest in new technology. While not a large part of BioMar's EBITDA, it is expected to develop significantly better than last year, contributing positively to profitability.
Q: Can you provide an update on the potential IPO of BioMar?
A: The CEO mentioned that they are moving towards appointing a banking syndicate, indicating progress. However, due to the current business climate, the IPO might not occur before late 2025 or into 2026. They are preparing BioMar for IPO readiness.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
