The Danish group acquired a 68.8% majority stake in BioMar in 2005 when the company was still listed. Following a merger in 2008, BioMar became a wholly owned subsidiary of Schouw & Co, which has been listed on Nasdaq Copenhagen since 1954.
The purpose of this evaluation, according to the parent company, is to assess whether a separate listing would create value for Schouw & Co while simultaneously providing BioMar with the best opportunities for continued growth.
“Should the evaluation support a separate listing, Schouw & Co intends to maintain its position as the majority shareholder,” said Jens Bjerg Sørensen, CEO of Schouw & Co, in the group’s interim report.
BioMar’s CEO, Carlos Diaz, noted the company’s impressive growth since becoming part of Schouw & Co, having nearly sixfold its revenue since 2005. “A potential separate listing of BioMar could provide the right platform for BioMar to continue its growth trajectory.”
If Schouw & Co determines that a separate listing of BioMar is the best course of action, it could potentially occur as early as the second half of 2025.
Headquartered in Aarhus, Denmark, BioMar is the largest company in the Schouw & Co portfolio, accounting for nearly half of the group's revenue and EBITDA.
It operates through several divisions, with the salmon division covering salmon feed production at factories in Norway, Scotland, Chile, and Australia. The company’s other feed operations are geographically divided into the EMEA division, which includes factory sites in Denmark, France, Spain, Greece, and Türkiye; the LatAm division, with sites in Ecuador and Costa Rica; and the Asia division, with operations in China and Vietnam. BioMar also operates a tech division focused on developing more efficient and sustainable intelligent feed solutions.
Since BioMar became part of the Schouw & Co. Group in 2005, the company has grown from a revenue of DKK 2.6bn with an EBITDA of DKK 124m to an anticipated 2024 revenue of DKK 16.5-17bn and EBITDA of DKK 1,410-1,460m (US$200m-207m).
Biological challenges in Norway
For the third quarter 2024, BioMar reported an 8% decline in volume sales compared to the same period in 2023, coupled with a 12% drop in revenue due to lower prices for several raw materials. However, despite reduced sales volumes, EBITDA held steady near the strong Q3 2023 levels.
Full-year revenue expectations have been slightly adjusted downward.
“In general, we are performing well across divisions despite challenges related to biological conditions in Norway and the Ecuadorian energy crisis, which has impacted our production of shrimp feed. Our focus on functional feed solutions combined with shared value creation with our customers is providing tailwind,” commented Diaz.
The salmon division faced year-on-year reductions in sales volumes, particularly in Norway and Chile, despite higher biomass in Norway. Exceptional sea water temperatures led to sea lice outbreaks and reduced oxygen levels, which in turn impacted feed intake. These declines also reflect BioMar’s strategic focus on maintaining long-term, profitable relationships with fish farmers rather than short-term volume growth. However, the company’s broad product offering, coupled with strong sales of functional feed and operational excellence, helped sustain earnings momentum even in the face of lower volumes, it reported.
The EMEA division saw a slight decrease in volume sales, due to reduced demand in the Mediterranean, particularly in Greece, where BioMar said it adopted a more cautious approach to credit risk, prioritizing secure payments over market share. In contrast, the LatAm division experienced significant growth in volume sales, with earnings improving despite challenges in the shrimp market, including low farmed shrimp prices.
In Asia, BioMar’s operations in Vietnam are still under development. Although volume sales increased, they fell short of expectations, and earnings were impacted by costs associated with market expansion, according to the parent company’s report.
Its tech division reported a revenue decline, with market interest in its technology solutions subdued by the ongoing low farmed shrimp prices. However, the division continues to invest in strategic initiatives, new talent, and expanding its product offerings to accelerate growth in both existing and new markets, reads the Schouw & Co publication.
Looking ahead, that report cautions that demand for feed will remain volatile, impacted by current market conditions and fluctuating prices of farmed fish and shrimp. Notably, the shorter farming cycle in shrimp farming makes demand more responsive to volume changes in farming operations.
