Aker BioMarine marks highest Q2 in history for offshore krill meal production

15 Jul 2022 --- Norwegian-based Aker BioMarine reported a net profit of US$15 million, presenting an increase of US$18 million in Q2 compared to the same quarter in 2021. Revenues are reported at US$73 million, on par with the previous year.

“In the report for the second quarter, we reiterated our financial targets for the year of 20%-25% top-line growth and 20%-25% earnings before interest, takes, depreciation and amortization (EBITDA) margin. So our total numbers align with our expectations,” Matts Johansen, CEO at Aker BioMarine, tells NutritionInsight.

The reports show adjusted EBITDA of US$21 million for the second quarter of 2022, a growth of 11%. Krill harvesting marked a 13% increase compared to last year, resulting in 39,000 tons.

 “The Superba krill oil sales organization is strengthened in all geographies and will execute on the upgraded pipeline to deliver growth. We reiterate our financial targets for the full year 2022,” Johansen adds.

“Offshore production of krill meal was 16,534 metric tons in the quarter, 19% above the same period last year, and the highest second quarter in the company’s history,” the report highlights.

Ingredients segment marks increaseAker BioMarine showed an 8% increase in sales from their ingredients segment. 
Even though sales showed an overall increase, different segments showed different performances. The ingredient segment showed an 8% increase compared to the same quarter the year before, while the brand’s segment decreased by 16%.

“For the second half of the year, we plan for increased sales of Superba krill oil and we expect that the demand for our animal health and nutrition products will continue to be high, especially QRILL Aqua for the salmon and shrimp feed markets,” Johansen notes.

The company previously spotlighted krill oil supplements as being “rich in omega 3 fatty acids and heart health properties, with positive impacts on liver health, skin hydration and muscle activation in sports.”

Macroeconomic challengesControlling the value chain has shielded the company from systematic risk, Johansen explains.
Johansen mentions that the company has not been severely affected by the supply chain crisis and the Ukraine war.

“To a large extent, Aker BioMarine controls our entire value chain, from krill harvesting, via krill meal and oil production to BTB and BTC sales. However, we have seen some macro environmental impact, both directly and indirectly.” 

“For instance, our customers in animal feed have observed cost increases on ingredients, and sales in our private label supplements business in the US have declined somewhat as large retailers have experienced supply chain disruptions this year. The sustained COVID-19 lockdown in China over the last six months has disrupted our abilities to roll out our business plans in that market.”

Similarly, the value chain control protects against inflation, as the company controls most factors.

“As we control our operational value chain, impacts from industry cost inflation come down to only a few parameters. On fuel cost, we are financially hedged through 2024, but on freight, we observe increased prices. In addition, in some countries, we observe increased payroll costs. But overall, we are comfortable with the development cost,” Johansen concludes.

The company previously reported aims to double revenues by 2025, by driving growth in the US and Asia. 

By Beatrice Wihlander

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