Aker BioMarine (AKBM) Q2 2024 earnings summary

Executive summary

• Sale of Feed Ingredients business for $590 million, classified as discontinued operations from Q2 2024, with focus shifting to Human Health Ingredient, Consumer Health Products, and Emerging Businesses.

• Q2 2024 revenue reached $94 million, up 6% year-over-year, with adjusted EBITDA of $29 million, up 35% year-over-year.

• Continued operations posted $49.2 million in revenue, up 4% year-over-year, and adjusted EBITDA of $7.7 million, down 21–22% year-over-year.

• Extraordinary dividend of NOK 35–45 per share planned post-transaction closing in Q3, with refinancing of debt expected.

• Human Health Ingredient and international channels showed strong growth, with new product launches and regulatory approvals.

Financial highlights

• Net profit for Q2 was $0.7 million, with $3.6 million from discontinued operations.

• Gross margin for continued business declined from 40% to 33% due to product mix and lower Superba prices.

• Net interest-bearing debt at $376 million, down from $399 million a year ago; leverage ratio below 5.0x covenant.

• Total free liquidity of $28 million; cash and cash equivalents of $20 million.

• CapEx for 2024 estimated at $10–15 million, split between maintenance and development.

Outlook and guidance

• Transaction closing expected in Q3, with extraordinary dividend payout and refinancing.

• Human Health Ingredient business expected to accelerate growth and expand EBITDA margins in H2, benefiting from global 4% annual growth in nutrition market.

• Inventory normalization anticipated in Consumer Health Products in H2 as retailer reductions end.

• Focus on streamlining overhead, innovation, and driving shareholder value through growth and potential future transactions.

• Emerging Businesses expected to reduce losses in 2024, with focus on partnerships and profitability.