BioMar, the third-largest aquaculture feed producer, almost its doubled operating profit for the first quarter of 2023 -- a significant improvement over a turbulent beginning to 2022.
Denmark-based BioMar's revenue grew by 21 percent in the first quarter, though a reduction in overall volume produced was flat, indicating the significant impact inflation was having both on input costs as well as selling prices.
The company credited the strong performance of its joint ventures in China and Turkey for its first quarter success.
The company said its European, Middle East and Asia divisions were "getting back on track" following the decision to withdraw from Russia in 2022, with the salmon segment in particular showing stable results.
BioMar announced on March 5, nine days after Putin’s invasion of Ukraine, that it would shut down all trade activities with Russia. Rivals Cargill and Skretting eventually followed suit, under pressure from employees and customers.
BioMar Denmark lost up to 20 percent of its sales following its decision and saw earnings for the first quarter plunge 60 percent.
CEO Carlos Diaz criticized his group's rivals, saying it was "unexpected that the international groups did not completely stop dealings with Russia."
In the Latin American division, volumes have increased, mainly driven by the development of product offerings and new production capacity in Ecuador.
At the same time as BioMar increased turnover and operating profit, the feed volume fell, from 288,000 metric tons in the first quarter of last year to 286,000 metric tons in the same period this year.