Aker BioMarine (AKBM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $50.8 million, up 5% year-over-year, with adjusted EBITDA up 59% to $9 million, reflecting strong operational performance and cost control.

• Human Health Ingredients segment led growth with 16% revenue increase and 36% higher EBITDA, driven by krill oil sales, improved pricing, and geographic expansion, especially in China, Europe, and South America.

• Consumer Health Products returned to growth, up 4% year-over-year, with improved EBITDA, new major retail partnerships, and inventory normalization.

• Emerging Business segment revenue remained stable sequentially but declined year-over-year; EBITDA loss narrowed due to reduced operating expenses and cost reductions.

• Restructuring program near completion, with new leadership in Houston and initiation of first human clinical trial for Lysoveta/Lucereta, supported by EU grant funding.

Financial highlights

• Adjusted EBITDA margin improved to 18% in Q1 2025 from 12% in Q1 2024.

• Group gross margin improved to 40% from 39% year-over-year.

• Cash flow from operations was negative $11.1 million, mainly due to working capital changes and transaction costs.

• Net cash flow was positive $1 million, ending with $16 million in cash and $25 million in available liquidity.

• Net interest-bearing debt at $157 million; leverage ratio at 4.8x adjusted EBITDA, within covenant limits.

• Equity ratio stood at 44% for the quarter.

• Net loss from continued operations was $2 million, improved from $2.6 million in Q1 2024; net loss including discontinued operations was $3.1 million, down from $11.9 million.

Outlook and guidance

• Human Health Ingredients expected to continue strong growth and profitability, leveraging operational scale and strong demand in multiple markets.

• Consumer Health Products forecasted to maintain modest growth after inventory normalization.

• Emerging Business aims for break-even through cost optimization and potential asset sales or transactions.

• Corporate cost base stabilized at $10–12 million annually post-feed ingredient divestment.

• Algae business expected to recover in H2 2025 after resolving production issues.